Fitch upgrades Uzbekhydroenergo JSC’s rating outlook to positive
International credit rating agency Fitch Ratings has affirmed the Long-Term Foreign Currency Issuer Default Rating (IDR) of Uzbekhydroenergo JSC at ‘BB’ and revised the rating Outlook from Stable to Positive.
The decision follows the upward revision of the Outlook on the sovereign credit rating of the Republic of Uzbekistan. It reflects the positive assessments by international rating agencies of the country’s ongoing economic reforms, efforts to maintain macroeconomic stability, strengthen fiscal discipline, improve the investment climate, reform state-owned enterprises, and enhance transparency and openness.
At the same time, the revision of Uzbekhydroenergo JSC’s Outlook to Positive is not solely attributable to the favorable change in the sovereign rating Outlook. In assessing government-related entities, Fitch Ratings considers a range of factors, including the company’s strategic importance, institutional links with the state, financial discipline, quality of corporate governance, operational resilience, market position, and level of transparency.
Against these criteria, Uzbekhydroenergo JSC’s significant role in the national energy system, its strategic importance to the hydropower sector, stable operating performance, responsible approach to meeting financial obligations, prudent financial policy, and ongoing efforts to improve operational efficiency are key factors supporting the Company’s credit profile.
In recent years, the Company has been implementing a comprehensive program to expand hydropower capacity, modernize generation facilities, develop new investment projects, enhance financial and operational management processes, and strengthen institutional sustainability.
In addition to economic performance indicators, the Company places significant emphasis on its social and operational responsibilities. Initiatives to efficiently use renewable energy resources, improve the reliability of electricity supply, modernize existing infrastructure, and expand regional energy capacity contribute to the country’s long-term sustainable development objectives.
Fitch Ratings’ revision of the Outlook to Positive further strengthens the Company’s credibility among international investors, financial institutions, and strategic partners. It also serves as an important positive signal for expanding access to investment financing, increasing participation in international capital markets, and fostering long-term strategic partnerships.
Uzbekhydroenergo JSC will continue its efforts to enhance the country’s energy security, modernize hydropower infrastructure, strengthen financial discipline, improve operational efficiency, ensure transparency and openness, and further develop corporate governance practices in line with international standards and best practices.
Nasiba Ziyodullayeva, UzA
