Moody's has affirmed Kazakhstan's sovereign credit rating at "Baa1" with a "Stable" outlook, the Ministry of National Economy of the Republic of Kazakhstan said, according to infohub.kz.
The agency's decision reflects the country's strong fiscal position, supported by low government debt, a high capacity to service it and accumulated foreign currency assets. According to Moody's, all of this gives Kazakhstan flexibility in economic policy and a buffer to cushion the effects of external economic shocks.
Despite lower oil output, the country's economy continues to grow, driven by manufacturing, construction, transport and other non-oil sectors.
Moody's expects investment in digital, transport and energy infrastructure to continue supporting medium-term economic growth and to increase the complexity of the economy's structure. According to the agency's forecast, non-resource industries will remain the main growth drivers.
The agency also believes that tax reforms will strengthen fiscal sustainability by broadening the budget's non-oil revenue base. According to Moody's, further economic diversification, together with tax reform and infrastructure investment, will improve fiscal prospects and the potential for economic growth.
Earlier, Kursiv wrote that S&P Global Ratings upgraded its industry risk assessment of Kazakhstan's banking system from "7" to "6" and revised the outlook for the "economic risk" component from "Stable" to "Positive." After the revision, Bank CenterCredit's long-term rating rose to "BB+", while the outlooks on the ratings of Halyk Bank, Nurbank and Freedom became positive.