Fitch Ratings has officially withdrawn the Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) of 'BB-' with a Stable Outlook for Tashkent city, Uzbekistan. This decision comes as Tashkent city has opted to discontinue its participation in the rating process, prompting Fitch to cease providing ratings and analytical coverage for the city.
Given the lack of participation from the issuer and insufficient third-party sources for verifying crucial credit factors, including fiscal and debt management policy, Fitch no longer possesses the necessary information to maintain the ratings. Consequently, both the Long-Term Foreign- and Local-Currency IDRs for Tashkent city have been withdrawn.
Tashkent, being the capital and financial center of Uzbekistan, holds a unique position in the country. While its wealth metrics surpass the national average, they notably lag behind international peers. Tashkent's budget accounts are presented on a cash basis, and budget laws are approved annually.
In the absence of adequate participation from the issuer and the lack of third-party sources to verify key credit factors, the withdrawal of ratings limits Fitch's ability to assess and determine the creditworthiness of Tashkent city.
Fitch's ESG considerations highlight Tashkent city's ESG Relevance Score of '4' for Data Quality and Transparency. This score reflects limitations on the quality and timeliness of financial data, including transparency of public debt and contingent liabilities that fall below international standards. While this negatively impacts the credit profile, it's essential to note that Fitch will no longer provide associated ESG Relevance Scores following the withdrawal of Tashkent's ratings.
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