The upgrade follows the state's continuing guarantee for 100 percent of the state-owned UGE's debt and no plans to place non-guaranteed Eurobonds in the near future.

The regulator’s decision was based on some key factors, including high inflation expectations, an unchanged inflation target of 10 percent.

Since the 2020 worldwide outbreak, Turkmenistan has remained one of five countries – along with North Korea and three Pacific island states – to report no COVID cases.