The agency’s reasons, as the cabinet relayed them, are the diversification of the economy, growth in GDP per capita, large infrastructure investment and stronger state finances, with a falling ratio of state debt to GDP and a fiscal policy that widens the budget’s revenue base. B2 sits one notch above B3 and remains a speculative grade. The cabinet’s statement quotes no figure from the agency’s text.
What a higher rating buys is a lower perceived credit risk among international investors and lenders and a benchmark for Kyrgyz banks and companies raising money abroad, Economist.kg wrote, and no automatic cut in borrowing costs, which depend on world markets, interest rates, the borrower and the terms of each issue.
B2 sits one notch above B3 and remains a speculative grade.
The upgrade lands beside the fiscal lines of the autumn: 956,139,000 som directed to fuel traders under the subsidy that runs to 31 December, and a presidential election on 27 January whose nomination window closes on 13 November.
The agency’s own release, with the figures behind its reasons, is the document the cabinet did not reprint.