International credit rating agency Fitch Ratings has affirmed the long-term issuer default ratings (IDRs) of the State Bank for Foreign Economic Affairs of Turkmenistan (SBFEAT) at ‘BB-’ in both foreign and local currencies, with a stable outlook. The decision was announced in a press release issued by the agency on June 16.

According to Fitch analysts, the ratings are aligned with Turkmenistan’s sovereign rating and reflect a moderate likelihood of government support. This assessment is based on the country's strong fiscal position, low public debt, and substantial foreign reserves. The bank’s special legal status, full state ownership, and strategic importance further underscore its role in implementing the government’s economic policy.

Fitch highlighted the bank’s robust financial stability, noting that over 60% of its assets are held in low-risk instruments. Loans make up 37% of the bank’s assets, with non-performing loans remaining at a moderate level.

Analysts also emphasized that a significant portion of the bank’s assets are denominated in foreign currencies, providing a hedge against potential depreciation of the national currency.

The State Bank for Foreign Economic Affairs remains the largest financial institution in Turkmenistan by asset size and plays a key role in financing priority investment projects in energy, industry, transport, and agriculture.

Additionally, the bank acts as the government’s financial agent in attracting foreign capital. A substantial portion of external borrowing—amounting to $2.6 billion at the end of last year, or about 30% of the bank’s total liabilities—is carried on its balance sheet as sovereign obligations.