An American financial services company, Standard & Poor’s Financial Services LLC (S&P), has determined Tajikistan’s credit rating.
According to the National bank of Tajikistan (MNT), Standard & Poor's credit rating for Tajikistan stands at B3 with stable outlook.
Recall, Moody's credit rating for Tajikistan was last set also at B3 with stable outlook.
To attract financial resources for construction of the Roghun hydroelectric power plant by means of issuance of state equities Tajikistan has needed services of a credit rating agency. To launch Eurobonds Tajikistan has needed findings of at least two credit rating companies.
To complete construction of the Roghun hydroelectric power plant (HPP) Tajikistan intends to issue US$1 billion worth of equities for selling them in international financial markets. Deputies of Tajikistan’s lower house (Majlisi Namoyandagon) endorsed the government’s proposal on issuance of equities for circulation in international financial markets on June 21, 2017.
The equities will be sold in the U.S. financial markets in accordance with the U.S. legislation.
According to Tajik Deputy Finance Minister, Jamshed Nurmahmadiyon, the sale of public equities will start in 2018 and gain on equities is expected to amount to 7.5-8.0 percent. The equities will be sold in the U.S. financial markets in accordance with the U.S. legislation.
In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of Tajikistan thus having a big impact on the country's borrowing costs.
A credit rating is an evaluation of the credit worthiness of a debtor, especially a business (company) or a government, but not individual consumers. The evaluation is made by a credit rating agency of the debtor’s ability to pay back the debt and the likelihood of default. Evaluations of individuals’ credit worthiness are known as credit reporting and done by credit bureaus, or consumer credit reporting agencies, which issue credit scores.
Credit ratings are determined by credit ratings agencies. The credit rating represents the credit rating agency’s evaluation of qualitative and quantitative information for a company or government; including non-public information obtained by the credit rating agencies’ analysts.
Standard & Poor’s Financial Services LLC (S&P) is a division of McGraw Hill Financial that publishes financial research and analysis on stocks and bonds. S&P is known for its stock market indices such as the U.S.-based S&P 500, the Canadian S&P/TSX, and the Australian S&P/ASX 200. S&P is considered one of the Big Three credit-rating agencies, which also include Moody’s Investor Service and Fitch Ratings. Its head office is located in New York City.
