ASTANA – Moody’s Investors Service (Moody’s) raised Kazakhstan’s outlook from stable to positive, affirming its ratings at Baa2, according to the report published on Oct. 27.
As stated by Moody, Kazakhstan’s progress in reducing reliance on hydrocarbon sectors may support the economy’s resilience to shocks, leading to a higher credit rating.
The expanding activities along the Trans-Caspian International Transport Route, also known as the Middle Corridor, have bolstered the trade, transport, and logistics industries. Given that, Moody’s expects this trend will accelerate due to the route’s increasing importance as an alternative channel for trade between China and the European Union.
Moody’s is optimistic about Kazakhstan’s economic strength and credit profile, which could be enhanced with ongoing reforms that are likely to benefit the development of the non-oil sector. Particularly, tax incentives, expanded subsidy programs, and the removal of institutional and administrative barriers aimed to stimulate investment growth and support entrepreneurship may highlight transport, agriculture, and selected segments of the manufacturing sector as key areas of focus.
Moody’s emphasized that further progress in diversification will enhance Kazakhstan’s ability to withstand fluctuations in oil prices and production.
Over the longer term, Moody’s anticipates a more robust economic outlook for Kazakhstan compared to peers with similar credit ratings, including other hydrocarbon producers.