Credit Ratings - The Times Of Central Asia

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Titanium

UKTMP Eyes Expanded U.S. Presence as Kazakhstan’s Titanium Champion Seeks New Markets

ASTANA — On June 11, Sylvain Gehler, Chairman of the Board of the Ust-Kamenogorsk Titanium and Magnesium Plant (UKTMP), and Assem Mamutova, the company’s CEO, spoke with The Times of Central Asia during the Astana Mining and Metallurgy Congress (AMM). He outlined their plans to strengthen the company’s international footprint, with the United States emerging as a priority market. During the meeting, Gehler highlighted UKTMP’s ambition to further solidify its position as a leading aerospace-grade titanium supplier, building on six decades of operations and what Kazakh officials describe as roughly one-fifth of the global aerospace titanium market. “The combination of Kazakhstan’s resource base, UKTMP’s decades of experience, and the increasing importance of secure supply chains creates a strong platform for future growth. We are committed to remaining a trusted partner for aerospace customers around the world,” Gehler said. UKTMP, based in eastern Kazakhstan, is among the world’s largest vertically integrated titanium producers, controlling the entire production chain from raw materials to finished products. The company’s products are used in aviation, medicine, shipbuilding, petrochemicals, and nuclear industries. Among its international partners are Boeing, Airbus, Safran, General Electric, and other leading manufacturers. [caption id="attachment_50948" align="aligncenter" width="708"] UKTMP -Titanium sponge at the end of the distillation process[/caption] Gehler emphasized that “delivering consistent, high-quality titanium products reflects our commitment to rigorous standards and positions us to meet rising demand for resilient, transparent supply chains while expanding in key markets.” The company’s long-term development plans and initiatives aim at reinforcing Kazakhstan’s standing in the global titanium industry. According to Gehler, “UKTMP’s investment program through 2033 includes 25 projects worth more than $520 million, including construction of a new titanium sponge facility that would significantly expand production capacity.” Currently, UKTMP has 30 types of titanium alloys. Titanium and its alloys combine a high melting point, high electrical resistivity, exceptional strength-to-weight ratio, corrosion resistance in air and seawater, and non-magnetic behavior. It is also lightweight—its specific gravity is approximately 56% that of steel—biologically inert, and readily formed under pressure, making titanium a versatile structural material widely used in advanced industries. United States Demand for Titanium The American aerospace and defense sectors rely heavily on titanium, while disruptions to traditional supply chains following sanctions on Russia have heightened interest in alternative suppliers. Kazakhstan has emerged as one of the countries helping fill that gap. [caption id="attachment_50961" align="aligncenter" width="1447"] Source: USGS[/caption] Industry analysts note that the United States currently lacks domestic titanium sponge production and remains dependent on imports. In 2025 through July, Japan supplied 73% of U.S. titanium sponge imports, while Kazakhstan and Saudi Arabia each supplied 13%. This strategic reliance underpins the favorable treatment the U.S. currently gives to Kazakh titanium, since heavy supply restrictions would adversely impact the U.S. aerospace and defense industries. This has not always been the case. For UKTMP, deeper access to the U.S. market represents not only a commercial opportunity but the makings of a strategic partnership. Increasing sales to American customers would further anchor Kazakhstan within Western aerospace and other supply...

U.S.-Uzbekistan Partnership

Uzbekistan Agrees Tariff Cuts for U.S. Goods as Moody’s Raises Sovereign Rating

Uzbekistan and the United States announced a new package of trade commitments on June 25. Moody’s raised Uzbekistan’s sovereign rating by one notch the same day. The two decisions strengthen Tashkent’s case that economic reforms are producing practical gains. Under the “early harvest” announced in Tashkent, Uzbekistan will eliminate or reduce tariffs on a wide range of U.S. industrial and agricultural goods. Washington offered favorable consideration for Uzbek products in future tariff actions, where U.S. law allows, though that language does not guarantee automatic tariff cuts for Uzbek exports. The two governments will put the commitments in writing in the coming weeks. They also agreed to speed up negotiations on an Agreement on Reciprocal Trade and Investment. President Shavkat Mirziyoyev discussed the package with U.S. Trade Representative Jamieson Greer during talks in Tashkent. The announcement gives a political lift to a relationship which is still small in terms of trade. U.S. goods trade with Uzbekistan reached over $1 billion in 2025. American exports rose 24.5% to $473.9 million, while imports from Uzbekistan climbed to $574.4 million, turning a $338.3 million U.S. surplus in 2024 into a $100.5 million deficit. The latest agreement builds on $32 billion in commercial deals announced in 2025. That figure includes an $8.5 billion Boeing agreement and planned activity in mining, energy, finance, and technology. Tashkent has also built new channels to move projects toward financing. A U.S.-Uzbekistan Business and Investment Council began work in April. A joint investment platform followed in June, with energy, infrastructure, critical minerals, and manufacturing among its target sectors. The Tashkent business forum drew 193 U.S. company representatives. Saida Mirziyoyeva, head of Uzbekistan’s presidential administration, set a clear standard at the council’s launch. “We are no longer at the stage where we speak about potential,” she said. “We are at the stage where we must deliver.” That goal extends to Uzbekistan’s long WTO accession process. The country applied to join in 1994, but negotiations stalled for years. Tashkent resumed active work in 2020 and completed bilateral market-access negotiations with the United States in December 2024. The U.S. agreement settled terms for trade in goods and services between the two countries. It did not complete Uzbekistan’s accession. Tashkent still needs an agreed multilateral package and approval from WTO members. Uzbek officials now aim to secure full membership by the end of 2026. The timetable has already moved beyond an earlier target linked to the WTO ministerial conference in March. Negotiations cover tariffs and market access, but also reach domestic rules on subsidies, state-owned companies, product standards, and intellectual property. Some industries may receive time to adjust. Chief WTO negotiator Azizbek Urunov said that transition periods of three to eight years had been discussed for some sectors. “Overall, tariffs will be reduced,” he said. “However, there are sectors that are sensitive for us.” WTO membership would place Uzbekistan’s trade policy under a common set of rules and give exporters access to the organization’s dispute system. It would also limit some forms of state...

Credit Ratings

Kyrgyz Authorities Seek Review of Sovereign Credit Rating

Kyrgyzstan’s Minister of Economy and Commerce, Bakyt Sydykov, held talks with analysts in Washington on the sidelines of the Spring Meetings of the International Monetary Fund and the World Bank Group, where the country’s macroeconomic stability was discussed. According to Sydykov, Bishkek is seeking an upgrade to its sovereign credit rating as part of the implementation of the National Development Program through 2030. He noted that engagement with Moody’s is aimed at strengthening international investor confidence and forms part of an ongoing institutional dialogue. Sydykov said the country is meeting its obligations within the framework of cooperation with the agency and expects further constructive information exchange. He also recalled that last year Moody’s revised Kyrgyzstan’s outlook to “positive” while maintaining the rating at B3, which authorities interpreted as confirmation of ongoing reforms. The minister added that the country’s economy has grown at an annual rate of 9.5-11% over the past four years, driven by investment, domestic demand, and activity in construction, services, and industry. Following the meeting with Moody’s, Sydykov also held talks with representatives of U.S. businesses, presenting investment opportunities in logistics, transport infrastructure, and energy, including hydropower. According to the National Statistical Committee of Kyrgyzstan, investment in fixed capital increased by 25% year-on-year in the first quarter, reaching 77.3 billion KGS ($883.4 million). Domestic investment rose by 20%, while foreign investment increased by 50%. For comparative sovereign risk ratings on Central Asia see TCA's Central Asia Balance Sheet.

Credit Ratings

Kazakhstan Moves to Launch National Credit Ratings Agency to Cut Reliance on Foreign Firms

Kazakhstan plans to establish its own credit ratings agency, a move that would give authorities greater control over how companies are assessed by investors and reduce reliance on foreign firms that dominate global markets. Madina Abylkassymova, chair of the Agency for Regulation and Development of the Financial Market (ARDFM), said the proposed agency would be set up with participation from the National Bank of Kazakhstan, an international ratings firm, and local financial institutions. At present, Kazakhstan does not have a fully domestic ratings system. Creditworthiness is assessed primarily by the “big three” global agencies — Standard & Poor’s, Moody’s, and Fitch — as well as by Expert RA and ACRA, which are accredited for prudential regulation. The ARDFM has drafted legislation to create a national ratings framework and regulate agencies operating in the market. The Mazhilis, the lower house of parliament, approved the bill in its first reading on April 15. “It is planned to establish a Kazakh rating agency as an independent institution for national credit assessment,” Abylkassymova said. “Its shareholders will include the National Bank, an international rating agency, and financial institutions.” Officials say the National Bank’s involvement will help underpin financial stability and build confidence among market participants. At the same time, the draft law introduces safeguards intended to preserve independence. Analysts’ remuneration will not be tied to clients’ financial performance, and restrictions will be placed on affiliations, including a ban on holding financial instruments issued by rated entities. The legislation also limits any single shareholder’s stake in the agency to 10% and requires at least half of the board of directors to be independent. The agency’s authorized capital is expected to reach about $21 million. Authorities say the new system should make it easier for companies — particularly small and medium-sized enterprises — to access capital markets. Abylkassymova said the reform would help reduce borrowing costs, improve transparency, and expand investment opportunities for institutional investors such as banks, pension funds, and insurers. Alongside the new agency, both domestic and foreign rating firms will be allowed to operate in Kazakhstan, subject to regulatory oversight. The ARDFM will have the authority to recognize agencies, monitor their activities, conduct inspections, and revoke their status if necessary. To enter the market, international and foreign agencies will need to meet qualification standards, including at least five years of operational experience, sufficient capital, a verified methodology, and institutional independence. All agencies will also be required to publish their methodologies, pricing policies, and any potential conflicts of interest. The Times of Central Asia previously reported that S&P Global Ratings confirmed Kazakhstan’s long-term sovereign rating in March while forecasting a slowdown in GDP growth in 2026.

Credit Ratings

Moody’s Upgrades Tajikistan’s Credit Rating to B2, Citing Economic Improvements

International rating agency Moody’s has upgraded Tajikistan's long-term sovereign credit rating to B2 with a stable outlook, according to the National Bank of Tajikistan. According to the financial regulator, Tajikistan has been cooperating with Moody’s since 2014, and the latest decision marks the first time the country’s sovereign rating has been raised to the B2 level. The National Bank said the upgrade reflects the government’s ongoing economic reforms and policy measures aimed at strengthening the country’s financial system and macroeconomic stability. Moody’s cited several factors behind the upgrade from B3 to B2, including sustained economic growth in recent years, improvements in fiscal management, and continued positive macroeconomic trends. The agency also highlighted progress in structural reforms, reduced risks related to public debt, and improvements in public financial management. The stable outlook indicates Moody’s expectation that Tajikistan will maintain prudent fiscal and monetary policies in the coming years. A B2 sovereign rating signals moderate creditworthiness. This means that while the country is capable of meeting its financial obligations, certain economic and external risks remain. Compared with the previous B3 rating, the upgrade reflects a stronger financial position and increased confidence from international financial markets. The stable outlook also suggests that no major macroeconomic shocks are expected in the medium term and that economic risks are considered manageable. Assessments by international rating agencies play an important role for countries seeking access to global financial markets. First, sovereign credit ratings help investors and lenders evaluate a government’s ability to meet its financial obligations, which directly affects borrowing costs and loan conditions. Second, a higher rating increases a country’s attractiveness to international investors. Global financial institutions often rely on such ratings when assessing investment risks, meaning improvements can help attract foreign capital. Credit ratings are also viewed as indicators of economic stability and fiscal discipline, strengthening confidence in government policies among international partners and domestic market participants. In addition, sovereign ratings influence external debt management and help governments raise financing for infrastructure and social development projects. The Moody’s upgrade is not the only positive signal for Tajikistan’s economy. Just a month earlier, another major international rating agency, Standard & Poor’s, improved the outlook on Tajikistan’s long-term sovereign credit rating from stable to positive while maintaining the rating at B. Taken together, the assessments from two leading global rating agencies highlight improvements in Tajikistan’s macroeconomic conditions and point to stronger prospects for financial stability in the coming years.