Moody’s confirmed Kazakhstan’s sovereign credit rating

22 October, 2018, 09:43 520
Moody’s confirmed Kazakhstan’s sovereign credit rating

The Republic of Kazakhstan has rated as stable.

October 17, 2018, Moody’s Investors Service has confirmed sovereign credit rating of Kazakhstan at the Baa3 Stable level, BNews.kz correspondent reports with a reference to the press service of the Kazakh Ministry of National Economy.

The rating of Kazakhstan has supported by a very low level of public debt, a very high ability to attract borrowed funds, substantial fiscal reserves in the form of assets in foreign currency, which provide a buffer for responding to possible economic shocks and covering potential risks. The stability of the economy is supported by relatively high medium-term growth, the flexibility of economic policy and above-average population welfare.

According to analytics, the manufacturing production growth since the beginning of 2017 provides a more balanced increase in oil and non-oil economies.  

Moreover, the transfer to inflation targeting with more flexible exchange rate reinforces the effectiveness of monetary policy, which improves the institutional capacity of the country.

Baa3 Stable Credit opinion of the Moody’s shows the positive characterization of analytics concerning the measures of the Government undertaken within price oil shock, as well as the availability of affordable financial buffer, which together stabilized the economy. Also, the support of the banking system, undertaken by the Government and the National Bank, made it possible to reduce risks in the short term.