Fitch Raises Uztelecom's Rating to 'BB' with Positive Outlook
Fitch has affirmed Uztelecom's long-term rating at 'BB' with a positive outlook and upgraded its standalone credit profile from 'bb-' to 'bb'.
In a statement dated 9 November 2026, the agency explained the revision by the expected growth in free cash flow and a gradual reduction in debt burden over the next two years. According to analysts, this will be supported by the operator's strong positions in the domestic market, expansion of its subscriber base, and a moderate level of debt.
The company's rating is aligned with Uzbekistan's sovereign rating of 'BB', and state support is considered extremely likely. The government owns 94% of Uztelecom's shares and determines key strategic directions, investments, and core functions in the field of information security. Additionally, the authorities guarantee around 43% of the company's external debt; by the end of 2027, this share is expected by the agency to exceed 50%.
As of the end of September 2026, Uztelecom held approximately 32% of the mobile communications market and 85% of the fixed broadband internet access market. However, infrastructure investments limit free cash flow: capital expenditures may reach 49% of revenue in 2026, decrease to around 27% in 2028, and to approximately 20% by 2029 under the baseline scenario.
Net debt to EBITDA, according to the forecast, is expected to increase from 2.3 times in 2025 to 2.8 times in 2026, then decline to 2.6 times by 2028. Maintaining this ratio below three times supports the standalone credit profile at 'bb'. Around 90% of the debt is denominated in foreign currency, while the majority of revenue is received in Uzbekistani sums; the company does not use hedging instruments.
Uztelecom is preparing for a potential international IPO as part of privatisation. The agency estimates that the offering itself will not affect the rating if the state retains a controlling stake.
