Fitch Assigns Expected BB-(EXP) Rating to UzAuto Motors Bonds

Tashkent, Uzbekistan (UzDaily.com) — UzAuto Motors plans to issue bonds on the international market in the near future.

International rating agency Fitch Ratings has assigned an expected rating of BB-(EXP) with a recovery rating of RR4 to the company’s upcoming senior unsecured five-year bonds.

The expected rating corresponds to the company’s current issuer default rating (IDR) of BB- and is in line with the existing senior unsecured bonds totaling US$300 million, which are scheduled to mature in May 2026.

Proceeds from the new issuance are intended to refinance existing bonds and bank loans. The final rating will be assigned following the approval of the final debt documentation.

Fitch noted that UzAuto Motors’ operational performance and profitability have declined over the past two years due to weak demand and credit conditions in Uzbekistan. In 2024, the company’s revenue fell by 8%, while sales decreased by 4.4% compared with 2023.

Negative free cash flow (-3%) has also put pressure on liquidity, which stood at US$44.2 million at the end of the first half of 2025, with limited access to credit lines.

At the same time, Fitch highlighted the company’s strong government support: UzAuto Motors is 99.7% state-owned, providing control over investments, financing, pricing, and support through tax incentives and shareholder loans. UAM holds a dominant position in the Uzbek market with a share exceeding 80% and employs more than 30,000 people.

The agency forecasts that 2025 sales will decline by 8% to 360,000 vehicles, with an EBITDA margin of around 8%. The new bonds will help strengthen liquidity ahead of the US$300 million eurobond repayment in May 2026.

Fitch also identified key rating risks, including a potential downgrade of Uzbekistan’s sovereign rating, rising debt levels, and continued negative cash flow. Positive factors include the company’s strong connection to the state and improving financial performance.

UzAuto Motors remains the leading automaker in the country, producing and selling vehicles under the Chevrolet brand, primarily for the Uzbekistan and Kazakhstan markets.