BAKU, Azerbaijan, July 8. Fitch Ratings has affirmed Uzbekistan-based Artel Electronics LLC's (AE) Long-Term Issuer Default Rating (IDR) at 'B' with stable outlook,Trend reports via Fitch.
The rating reflects the group's small scale, limited geographical diversification, improved, albeit still high, foreign-currency (FX) risk, and delayed deleveraging in comparison to the previous forecast. Negative free cash flow (FCF) generation and exposure to Uzbekistan's operating-environment risks additionally constrain the rating.
Rating strengths are its leading market position, which provides sustained revenue visibility, and should support AE's moderate funds flow from operations (FFO) generation.
Last year, Artel became the first private manufacturing company in Uzbekistan to receive a credit rating from one of the Big Three international rating agencies. Recent business reforms in Uzbekistan have allowed private companies such as Artel to restructure, access international financial opportunities and open up overseas markets.
In 2022, the company issued its first bonds on the Tashkent Stock Exchange.