Moody's credit agency issued a credit profile of Kazakhstan economy
According to the updated credit profile, Kazakhstan's rating remains Baa3 positive, meeting the pre-pandemic metrics, despite persistent economic uncertainty in the world and the region.
Initially, Baa3 positive 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 working out anti-crisis measures and ensuring fiscal sustainability.
Moody’s positively assessed the high growth potential of the economy in both the mining and processing sectors, indicating the positive growth rates of the real sector in 2020.
These factors represent a significant reserve against the economic shocks associated with the spread of the pandemic. Taking into account the above dynamics, Moody's signals the possible growth of the credit rating of the economy of Kazakhstan.
Factors shaping the potential for raising the credit rating of Kazakhstan are the willingness to further reforming the institutional environment, measures aimed at further diversification of the economy, and increase the stability of the banking sector.
Earlier, on February 15, 2021, Analytical Credit Rating Agency ACRA (RF) confirmed the pre-pandemic credit ratings of Kazakhstan, improving the outlook from “negative” to “stable”.