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Fitch affirms Kazakhstan's sovereign credit rating

Kazakhstan Materials 3 December 2022 10:38 (UTC +04:00)
Fitch affirms Kazakhstan's sovereign credit rating
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, December 3. Fitch Ratings has affirmed Kazakhstan's Long-Term Foreign-Currency Issuer Default Rating (IDR) at “BBB” with a stable outlook, Trend reports, citing Fitch.

According to Fitch, a key rating driver includes strong balance sheets that have proven their resilience to external shocks.

Kazakhstan's solid external balance sheet will be supported by current account surpluses from 2022 through 2024. The country's sovereign net foreign assets position, at 37.8 percent of GDP at end of 2021, is the second highest in the “BBB” rating category and well above the peer median of 2.9 percent.

Fitch expects stable credit and adequate capitalization of the Kazakhstan banking sector with a non-performing ratio of 4.6 percent as of the third quarter of 2022.

Fitch economists also consider that high-interest rates for Kazakh tenge deposits prevented the population from withdrawing funds from banks.

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