Fitch affirms Uzbek manufacturer Artel at ‘B’, Outlook Stable

By Trend

On Wednesday 6th July, Fitch Ratings (Fitch) affirmed Artel Electronics LLC (Artel), Central Asia’s largest home appliance and electronics manufacturer, at B, Outlook Stable.

Alongside recognizing export growth, the rating agency noted the company’s “leading market position” and “sustained revenue visibility”. Significantly, Fitch also praised the company’s “material improvements” in corporate governance, the result significant work undertaken by Artel in this direction in recent years.

Artel is one of Uzbekistan’s largest companies and most recognizable brands. The company was founded in 2011 with limited product lines. Since then, the company has grown to produce a wide range of household appliances and electronics, with around 10,000 employees operating in all regions of Uzbekistan, and over 20 export markets.

Last year, Artel became Uzbekistan’s first private manufacturing company to gain a credit rating from one of the “Big Three” international rating agencies. Recent business reforms in Uzbekistan have enabled private companies like Artel to restructure, access international financing opportunities and explore foreign markets. In 2022, the company issued its first bond on the Tashkent Stock Exchange.

Shohruh Ruzikulov, CEO, Artel Electronics LLC, said: “We are very pleased that Fitch has affirmed our rating this year. In 2021, the global supply chain crisis impacted the entire manufacturing industry and constrained our growth. The affirmation of our rating is representative of our capable navigation of these challenges.

We are also particularly pleased that our improvements in corporate governance have been recognized. Artel is working hard to strengthen our position and align with international best practice across all areas of ESG.”

The Fitch rating provides Artel with an independent benchmark of the company’s position as a borrower. It follows a rigorous annual assessment of the company’s financial and commercial position, both now and in relation to forecasts and predictions from previous years.