According to him, the country has received sovereign B2/ Stable and B credit ratings from Moody's Investors Service and Standard & Poor's. Note, that large international investors, before coming to the country, study its economic situation exactly according to the ratings. Assigning of credit ratings to the country has impact on the commercial banks and enterprises. Based on it, the banks and other financial intermediaries make decisions on lending, transactions in the money market, insurance, leasing and other situations that require assessment of the solvency of a business partner.
"This rating reflects the current economic situation in the country. It is a reference point for further improvements through structural reforms and economic reforms. Moreover, commercial banks and enterprises will be able to count on the improvement of the funding conditions from non-residents, fixing of lower interest rates, attraction of significant amounts of funding for large-scale government projects," the Ministry of Economy says.
B credit rating by Standard & Poor's in the long term means that the issuer is solvent, but unfavorable economic conditions are likely to adversely affect its ability and willingness to carry out debt payments. In the short term, it shows that the debt obligations have a speculative nature. The issuer has the opportunities to repay them, but these opportunities are very sensitive to adverse economic conditions. In general, B rating is considered to be positive.
B2/ Stable credit rating by Moody's Investors Service refers to the speculative class. Debt obligations with B rating are subject to high credit risk. Moody's agency adds numeric modifiers 1, 2 and 3 to each general rating category. The modifier 2 indicates that the position is in the middle of the list. Read the full story International agencies assign credit rating to KYRGYZSTAN for the first time
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