Standard & Poor’s Keeps Stable Outlook for Kazakhstan’s Sovereign Credit Rating 

ASTANA – Standard & Poor’s international rating agency has reaffirmed Kazakhstan’s sovereign credit rating at BBB-/A-3, maintaining a stable outlook, on March 1, reported the Kazakh Ministry of National Economy. 

Standard & Poor’s logo. Photo credit: Kazakh Ministry of National Economy

“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. 

According to S&P analysts, Kazakhstan’s liquid foreign assets are expected to continue significantly exceeding its external debt in the coming years. This robust financial position underpins the stable rating outlook and reflects confidence in the country’s ability to manage its finances effectively.

The report highlights that economic growth in Kazakhstan has been driven by activity in the construction, industry, trade, information, and communication sectors. Government stimulus measures, including infrastructure development and further diversification, have been noted as key factors contributing to 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 expected to sustain the country’s investment-grade rating by bolstering 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. 

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