BAKU, Azerbaijan, May 27. Fitch Ratings has affirmed Kazakhstan's long-term foreign-currency issuer default rating (IDR) at 'BBB' with a stable outlook, Trend reports.
As the international rating agency noted, the credit ratings of Kazakhstan, rated 'BBB', are a reflection of its robust fiscal and external balance sheets, which have demonstrated resilience in the face of external shocks. The country also benefits from financial flexibility supported by its substantial oil revenue savings.
However, there are certain challenges to consider. Kazakhstan exhibits a significant reliance on commodities, and its high inflation is partially attributed to an economic policy framework that is relatively less developed when compared to its 'BBB' peers. Additionally, the country's governance indicators indicate weaknesses.
Fitch anticipates that the economy of Kazakhstan will witness growth of 4.5 percent in 2023 and 4.8 percent in 2024. These projections take into account the commencement of operations at the expanded Tengiz oilfield, leading to a notable surge in oil export volumes by more than a third. The authorities estimate the medium-term growth potential to be approximately 4 percent.