Moody's Investors Service has upgraded Tajikistan's sovereign credit rating from "B3" with a "stable" outlook to "B3" with a "positive" outlook, according to the National Bank of Tajikistan (NBT).
This upgrade is attributed to "improved economic indicators of the country." The rating increase was driven by factors such as stable economic growth and increased international reserves, which helped the country meet its external debt obligations on time, reduce potential balance of payments risks, strengthen external economic indicators in recent years, and secure additional concessional financing from development partners to support medium-term needs for key state projects, the report notes.
Moody's, along with Standard & Poor’s and Fitch Ratings, is part of the "big three" international credit rating agencies. The disclosure of sovereign credit ratings is one of the key requirements for entering international capital markets. These results can play a positive role in attracting investments and fostering cooperation with international financial institutions, investment banks, and development partners.
Earlier, it was reported that Standard & Poor’s Global Ratings raised Tajikistan's long-term credit rating for obligations in foreign and national currencies from "B-" to "B," assigning the country a "stable" outlook.
Moody's Corporation, often referred to as Moody's, is an American business and financial services company. It is the holding company for Moody's Ratings (previously known as Moody's Investors Service), an American credit rating agency.
Ratings assigned on Moody’s Ratings global long-term and short-term rating scales are forward-looking opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions, structured finance vehicles, project finance vehicles, and public sector entities.
Long-term ratings are opinions of the relative credit risk of financial obligations with an original maturity of one year or more. They address the possibility that a financial obligation will not be honored as promised. Such ratings use Moody’s Ratings Global Scale and reflect both the likelihood of default and any financial loss suffered in the event of default.
Short-term ratings, unlike our long-term ratings, apply to an individual issuer's capacity to repay all short-term obligations rather than to specific short-term borrowing programs.
S&P Global Ratings (previously Standard & Poor's and informally known as S&P) is an American credit rating agency (CRA) and a division of S&P Global that publishes financial research and analysis on stocks, bonds, and commodities. S&P is considered the largest of the Big Three credit-rating agencies, which also include Moody's Ratings and Fitch Ratings.
Fitch Ratings Inc. is an American credit rating agency and is one of the "Big Three credit rating agencies", the other two being Moody's and Standard & Poor's. It is one of the three nationally recognized statistical rating organizations (NRSRO) designated by the U.S. Securities and Exchange Commission in 1975. Fitch Ratings is the third largest NRSRO rating agency, covering a more limited share of the market than S&P and Moody's, though it has grown with acquisitions and frequently positions itself as a "tie-breaker" when the other two agencies have ratings similar, but not equal, in scale.
