S&P affirms Kazakhstan rating at BBB-/A-3

Standard & Poor’s (S&P) has affirmed Kazakhstan’s sovereign credit rating at BBB-/A-3, with a stable outlook, according to Kazakhstan’s Ministry of National Economy. The rating agency cited the country’s strong financial reserves as a key factor in mitigating potential external risks.

S&P forecasts that Kazakhstan’s liquid external assets will far exceed its external debt. Experts also anticipate that increased oil production at the Tengiz field will support the country’s economic growth.

The agency noted that midterm fiscal trends will depend on how strictly Kazakhstan adheres to its fiscal rules. Expanding the tax base and imposing restrictions on additional transfers from the National Fund of Kazakhstan could help reduce the budget deficit.

S&P analysts also pointed out that Kazakhstan’s banking sector is resilient to external challenges. Second-tier banks have sufficient capital and adequate liquidity, lowering macroeconomic and geopolitical risks, the agency said.