Moody’s Affirms Kyrgyzstan’s B3 Rating, Upgrades Outlook to Positive

Moody’s Investors Service has reaffirmed Kyrgyzstan’s long-term credit rating at B3 and upgraded its outlook from stable to positive, reflecting increased confidence in the country’s economic and fiscal prospects.

The announcement was made by David Eldridge, Managing Director of Moody’s commercial division, during a meeting with Kyrgyz Finance Minister Almaz Baketaev, The Caspian Post reports via Kyrgyz media.

Both parties discussed ways to enhance Kyrgyzstan’s investment climate, attract foreign financing, and further improve the nation’s credit rating.

Robust Economic Growth and Strong Investor Interest

The Ministry of Finance reported that Kyrgyzstan’s economy continues to grow steadily, with real GDP increasing by 11.5 per cent from January to July 2025.

In a landmark achievement, Kyrgyzstan issued its first-ever Eurobonds in May, raising $700 million with investor demand surpassing supply by threefold. The five-year bonds carry a coupon rate of 7.75 per cent.

Funds raised, approximately 10 billion soms ($114.351 million), have been allocated strategically:

24 billion soms ($274.442 million) placed in deposits,

26 billion soms ($297.312 million) issued as budget loans at a 6 per cent annual interest rate,

With part of the proceeds used to purchase gold.

The income generated from these allocations is directed into a public debt mitigation account, aimed at servicing external debt obligations.

Financial Stability and Budget Growth

The ministry also emphasized the country’s stable financial position. Kyrgyzstan posted a republican budget surplus of 34 billion soms ($388.793 million) in 2024, and the consolidated budget for 2025 is forecasted to reach nearly 1 trillion soms ($11.435 billion).

Moody’s outlook upgrade reflects optimism about Kyrgyzstan’s fiscal discipline, improved access to capital markets, and sustained economic growth, paving the way for potential future rating enhancements.