BAKU, Azerbaijan, Feb.17
Trend:
The updated credit opinion showed preservation of Kazakhstan’s pre-COVID-19 pandemic indicators (Baa3 ‘positive’ outlook), despite the sustainable uncertainty of the global and regional economic situation, Trend reports referring to the country’s government.
Initially, the rating was Baa3 ‘positive’ outlook was assigned to Kazakhstan in August 2019.
The factors that made it possible to maintain the Baa3 status and the positive outlook on the credit rating were the low level of public debt, significant fiscal reserves, high potential for economic and household income growth, flexibility and efficiency of the government in shaping anti-crisis measures and ensuring fiscal sustainability.
Moody’s positively assessed the high growth potential of the economy in both the extractive and processing sectors, noting the positive growth rates of the real sector in 2020. These factors formed a significant reserve against the economic shocks associated with the spread of the pandemic.
Given the above dynamics, Moody’s noted the likelihood of raising the credit rating of Kazakhstan’s economy. Factors shaping the potential for raising the country’s credit rating are, inter alia, the willingness to further reform the institutional environment, measures to further diversify the economy, and increase the stability of the banking sector.
Earlier, on February 15, 2021, the Russian Analytical Credit Rating Agency (ACRA) confirmed the pre-pandemic credit ratings of Kazakhstan by upgrading the outlook from ‘negative’ to ‘stable’.