According to the report, the agency also upgraded UAM's senior unsecured bond rating from 'BB-' to 'BB', assigning a recovery rating of 'RR4'. The outlook on the company's long-term Issuer Default Rating (IDR) remains 'Stable'.
"The upgrade reflects an improvement in UAM's standalone credit profile (SCP), which was raised from 'b-' to 'b' following the refinancing of eurobonds, improved liquidity, and our expectations of positive free cash flow in 2026–2029," Fitch Ratings said.
In November 2025, UAM refinanced its $300 million eurobonds maturing in May 2026 by issuing new $350 million eurobonds maturing in November 2030. The proceeds were used to repay the maturing bonds and part of the company's domestic bank debt.
Fitch noted that the refinancing significantly strengthened the company's liquidity position. UAM's cash holdings increased to $89.5 million at end-2025 from $42.8 million a year earlier. Additionally, the company maintained access to $70 million in financing under an export credit agency program and a syndicated loan.
The agency expects liquidity to be supported by positive free cash flow over the next four years, driven by lower working capital needs as retail auto loan receivables are gradually collected and the company stops directly financing car purchases.
UzAuto Motor also posted stronger-than-expected operational results in 2025.
During the year, the company sold nearly 400,000 vehicles at an average domestic selling price of $10,600, generating revenue of $4.1 billion and EBITDA under Fitch's methodology of $355 million. Both figures exceeded the agency's previous forecasts.
Although free cash flow remained slightly negative at minus $52 million in 2025 due to growth in trade receivables related to customer financing, Fitch expects it to turn positive from 2026.
The rating agency also stated that UAM continues to benefit from exceptionally strong government support under its Government-Related Entities (GRE) methodology.
The government of Uzbekistan indirectly owns 99.7% of the company, exercises significant control over key investment decisions and car pricing, and has previously supported the automaker through tax breaks, shareholder loans, and import tariff protection.
Fitch also highlighted UAM's strategic importance to Uzbekistan's economy, noting that the company is the only domestic car manufacturer and directly or indirectly employs over 30,000 people.
According to the agency, a potential default by UAM could also affect Uzbekistan's access to international capital markets, as the company became the country's first corporate eurobond issuer and continues to be financed by leading domestic banks.
Looking ahead, Fitch forecasts moderate sales growth to 400,000 units in 2026 and revenue to $4.4 billion, rising to $4.7 billion by 2029.
The agency expects EBITDA margins to increase from 8.6% in 2026 to around 9.5% by 2029, driven by higher sales volumes and stable average domestic car prices of about $10,800.