ASTANA, Kazakhstan, July 16. The international credit rating agency Fitch Ratings has affirmed Kazakhstan’s sovereign credit rating at “BBB” with a Stable Outlook, Trend reports via the Ministry of National Economy of the Republic of Kazakhstan.
The agency notes that the key factors supporting the rating include:
A high level of net external assets, including the foreign currency assets of the National Fund of Kazakhstan and the gold and foreign exchange reserves of the National Bank;
Low government debt;
Ongoing gradual fiscal consolidation;
Financing flexibility;
Stable economic growth;
Moderate geopolitical risks.
“High oil production levels due to the expansion of the Tengiz oil field (TCO) will significantly offset the impact of lower oil prices. According to the agency, tax code reforms are expected to help reduce the fiscal deficit in the medium term,” the report states.
Moreover, the government debt-to-GDP ratio, including guaranteed obligations, is expected to remain stable.
The report also emphasizes that continued budgetary and quasi-budgetary support allows the non-resource sector of the economy to consistently contribute to the overall economic structure.
According to Fitch, the 25 percent tariffs imposed by the U.S. are not expected to have a significant impact on Kazakhstan’s economy due to the low share of U.S. trade in the country’s overall foreign trade. Additionally, the agency highlights low risks of secondary sanctions.
Fitch Ratings is one of the three largest international rating agencies, alongside Standard & Poor’s (S&P) and Moody’s. It specializes in assessing the creditworthiness of companies, financial institutions, sovereign states, and the debt instruments (bonds) they issue.
