Monday September 11 2017
News Source: Global Exchanges
Focus: General - Global Exchanges
Type: General
Country: Kazakhstan
On the 8th of September, Standard & Poor’s (S&P), revised the outlook on the ratings of the Republic of Kazakhstan from “Negative” to “Stable”. The Agency also confirmed the long-term and short-term sovereign credit ratings at the level of “BBB- / A-3” and the country’s rating on the national scale at the level of “kzAA”.
The Basis for the change is that S&P predicts a stable economic outlook for the nation, due to budget expenditures related to government plans on recapitalization of the banking sector, and economic indicators of the country.
Furthermore, the Agency has said that these ratings are adjustable and changes could occur. For instance the ratings may be further upgraded if recent political reforms lead to a significant strengthening of state institutions. Other circumstances whereby the rating may improve, would be if Kazakhstan adopted a new strategy of economic diversification. However such developments are unlikely outcomes based on S & P’s current predictions.
In contrast, Ratings may also deteriorate if external economic indicators decline further than expected. This may happen, for example, if the country’s aggregate needs for external financing exceed 100% of the revenues on the current account (STO) plus available reserves.
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