ASTANA – Standard & Poor’s (S&P) international rating agency confirmed Kazakhstan’s sovereign credit rating at BBB-/A-3, improving its outlook from negative to stable, according to its rating released on March 3.
The Kazakh economy’s fiscal and external balance sheets are the key factors supporting the country’s credit rating.
The S&P report states the significant amount of accumulated reserves and fiscal stability will be sufficient to mitigate the potential impact due to lower oil exports associated with disruptions at the Caspian Pipeline Consortium (CPC).
The country’s sovereign rating may be improved with efficient fiscal policy, which will slow down the dynamics of the debt burden and debt service.
S&P analysts noted the sustained growth in the non-oil sector would also be supported by measures to attract foreign investment.
The agency projects a 4.1 percent growth of Kazakhstan’s economy this year and approximately 4 percent in 2023-2026 on average, according to the press service of the country’s government. Construction, information and communications, trade, transport, and manufacturing sectors contributed to a 3.2 percent economic growth in 2022.
S&P positively rated the Kazakh government’s effective macroeconomic policy aimed at diversifying the economy through investment programs, improving the investment climate and tax policy, developing competition, reforming public procurement, and reducing state participation and administrative barriers for business.