Tashkent, Uzbekistan (UzDaily.com) -- The international rating agency S&P Global Ratings has confirmed the sovereign rating of Uzbekistan in foreign currency at BB- with a stable outlook, the agency said in a press release.

The stable outlook reflects our expectation that Uzbekistan’s comparatively strong fiscal and external buffer position will help its economy withstand the negative macroeconomic impact of the Russia-Ukraine conflict over the next 12 months.

The agency expects that the sanctions imposed on Russia will put pressure on Uzbekistan’s economic growth and slow down the pace of fiscal consolidation this year, as Russia is Uzbekistan’s largest trading partner.

The agency predicts that real GDP growth will average around 5% per year starting in 2023.

That said, the rating could come under pressure if dollarization in the economy rises significantly or financial performance of key state-owned enterprises (SOEs) weakens, leading to contingent liabilities being carried over to the government’s balance sheet