S&P affirms ratings of the Republic of Kazakhstan at 'BBB-/A-3' with negative outlook

Stanislav ChuyevSeptember 13, 2016

Commodity-dependent economy of Kazakhstan continues to face pressures in an environment of low and volatile oil prices, but Kazakhstan’s creditworthiness remains supported by its still strong balance sheet underpinned by sizable sovereign wealth fund assets of about 50% of GDP.

On September 9, S&P rating agency affirmed the ratings of the Republic of Kazakhstan at the level of «BBB-/A-3" with "Negative" outlook.

The agency believes that commodity-dependent economy of Kazakhstan continues to face pressures in an environment of low and volatile oil prices.

At the same time, Kazakhstan’s creditworthiness remains supported by its still strong balance sheet underpinned by sizable sovereign wealth fund assets of about 50% of GDP.

The negative outlook primarily reflects the risk that Kazakhstan’s fiscal and external profiles may weaken from their still relatively strong levels over the next 18 months

Our opinion

We view the news as neutral, since this rating action and the opinion of S&P as a whole, in our opinion, objectively reflect the real economic situation in Kazakhstan.