Standard & Poor’s (S&P) has maintained a stable outlook for Kazakhstan's sovereign credit rating, according to recent reports
On March 1, the Kazakh Ministry of National Economy reported that Standard & Poor’s (S&P), an international rating agency, has reaffirmed Kazakhstan’s sovereign credit rating at BBB-/A-3, with a stable outlook.
“The stable outlook on the ‘BBB-‘ long-term rating on Kazakhstan reflects our view that risks from weaker growth and relatively high external financing needs are mitigated by planned governance and economic reforms, as well as strong asset buffers,” said the agency in a statement.(Source:astanatimes)
S&P analysts anticipate that Kazakhstan will maintain a significant surplus of liquid foreign assets over its external debt in the foreseeable future. This strong financial standing supports the stable outlook for the country's credit rating and demonstrates confidence in its fiscal management capabilities.
The report underscores the role of various sectors including construction, industry, trade, information, and communication in driving economic growth in Kazakhstan. It also acknowledges government initiatives such as infrastructure development and diversification efforts as key drivers of this growth.
“Continuing geopolitical uncertainty and lower oil prices than in 2022 are raising Kazakhstan’s gross external financing needs and weigh on fiscal performance. In 2023, the government relied more on asset transfers from the National Fund of Kazakhstan to meet funding gaps due to revenue shortfalls. We expect slower increases in government spending and ongoing economic reforms will moderate the twin deficits over 2024-2027 compared with 2023,” said the agency.
These reforms are anticipated to uphold the country's investment-grade rating by strengthening its economic resilience.
“The government of Kazakhstan is committed to actively working towards maintaining its sovereign rating at an investment-grade level. This ongoing effort is crucial for attracting foreign investment and supporting the nation’s long-term economic stability,” said the Kazakh ministry in a statement.
