Fitch Confirms Kazakhstan's BBB Rating with a Stable Outlook
The Fitch credit rating agency affirmed Kazakhstan’s long-term foreign currency issuer default rating (IDR) at ‘BBB’ with a stable outlook, according to the Fitch ratings released on May 17, reported the agency.
The main rating factors are Kazakhstan's robust sovereign external and fiscal balance sheets, which have proven resilient to shocks, along with financing flexibility supported by accumulated oil revenue savings.
“Set against these are its very high dependence on commodities, export concentration risk, high inflation, which partly reflects a less developed macroeconomic policy framework relative to ‘BBB’ peers, and weak governance indicators,” reads the report.
Other contributing factors include substantial external buffers, foreign currency reserves, a stable fiscal position, low public debt levels, and moderate geopolitical risks.
The report highlights that the annual oil production of 89.9 million tons in 2023 “will be boosted by 12 million tons upon the completion of the Tengiz oil field expansion, expected in 2025, and will slightly decline thereafter due to aging fields.”
Fitch assesses the country as “at relatively low risk of broad-based secondary Western sanctions” owing to the implementation of banking sector sanctions and re-export measures.(Source:astanatimes)
