Moody’s upgrades Kazakhstan’s rating to the highest in the country’s history

Moody’s has improved Kazakhstan’s long-term rating from Baa2 to Baa1 and the outlook has been changed to «stable.» This is the highest rating in the country’s history, according to the Ministry of National Economy. The upgrade of Kazakhstan’s credit rating strengthens economic stability, enhances its international reputation and facilitates foreign direct investment.

The agency raised Kazakhstan’s credit rating due to ongoing improvements in the country’s institutional and policy framework, along with sustained progress in economic diversification.

Moody’s reports that Kazakhstan is increasing the share of the non-oil sector in its economy, thereby reducing its dependence on fluctuations in oil prices and production levels.

Experts highlighted that Kazakhstan has more prospects than other oil-producing states and ongoing reforms will help strengthen the country’s competitiveness.

Moody’s identified the development of the transportation and logistics sector, particularly the Trans-Caspian international trade route, as a key factor in Kazakhstan’s economic growth. Analysts believe the Middle Corridor will attract foreign investors to various non-oil sectors of Kazakhstan’s economy, including automotive, pharmaceuticals, food processing and construction materials.

The agency pointed to Kazakhstan’s positive financial performance, noting its low debt levels and high debt availability. International experts also highlighted that the government is pursuing a balanced policy to keep the budget deficit between 2.5% and 3% of the GDP.

To support its expert conclusion, Moody’s also cited draft documents of the new state budget and tax code, which analysts believe will improve the effectiveness of budgetary policy, enhance financial accountability and boost tax revenue collection.

Overall, the agency positively assesses Kazakhstan’s efforts to improve the business climate, attract investment, create favorable working conditions and reduce bureaucracy. Analysts believe that the ongoing reforms in public administration and anti-corruption efforts positively impact political stability, civic engagement and transparency.