This happened due to the capital’s decision not to participate in the rating process.
Fitch Ratings has canceled the “Stable” forecast at the “BB-” level of the long-term issuer default rating of the city of Tashkent in foreign and national currencies at the “BB-” level. The reason for this is that Tashkent decided not to participate in the rating process.
“Fitch no longer has sufficient information to provide a rating. Accordingly, the agency will no longer provide ratings and analytical reports for the city of Tashkent,” Fitch Ratings said in a commentary.
The Big Three credit rating plays an important role in assessing the investment attractiveness of a city. Given this, it is unclear why the capital’s administration stopped providing data to Fitch.
For reference, in June 2019, Fitch Ratings assigned Tashkent a long-term rating of “BB-” with a “stable” outlook at the level of the sovereign credit rating.
Fitch Ratings is an American financial corporation, known as one of the three most influential international rating agencies, along with Standard & Poor’s and Moody’s. Receiving a positive rating from such agencies is a guarantee of the financial reliability of a city or state in the eyes of investors.
