International rating agency Fitch Ratings has affirmed Turkmenistan's Long-term foreign currency Issuer Default Rating (IDR) at 'B+' with a 'Positive' outlook.

"The rating is supported by Turkmenistan's extremely strong sovereign balance sheet with the highest sovereign net foreign asset (SNFA)/GDP and lowest sovereign debt in the 'B' peer group, backed by the fourth largest gas reserves in the world," the agency said in a statement on its website on Friday. 

It assessed that external finances continue to improve, with the SNFA rising to 51.5 per cent of GDP in 2023, compared to the B peer group average of minus 22.5 per cent. "Liquidity metrics have also improved and we forecast external debt service to remain below 9 per cent of current external revenues through 2025, well below the 2021 level of 14.8 per cent and the current peer group median of 18.8 per cent." 

The agency also notes that the government has increased international engagement and made progress towards WTO accession.

In February 2023, Fitch Ratings changed the outlook on Turkmenistan's long-term foreign currency issuer default rating to Positive from Stable and affirmed it at B+. 

The B+ rating means that the country is in the middle tier of the positive ratings group and shows a strong balance sheet with significant natural resources. The public rating is used by banks and other organizations, including those seeking an independent assessment of the country's investment opportunities.