Monday March 14 2016

News Source: Global Exchanges

Focus: Credit Rating

Type: General

Country: Kazakhstan

Link: http://www.kase.kz/en/news/show/1289442




Standard & Poor`s Ratings Services have affirmed their `BBB-` long-term and `A-3` short-term foreign and local currency sovereign credit ratings on the Republic of Kazakhstan. The outlook remains negative.

The ratings on Kazakhstan continue to be supported by the government`s strong fiscal position, built on accumulated past budgetary surpluses. In particular, they project the general government will remain in a net asset position over the next few years, helped by the authorities` capacity and willingness to contains pending. The ratings remain constrained by the view of Kazakhstan`s limited institutional and governance effectiveness, owing to the highly centralized political environment, the country`s moderate level of economic development, high dependence on the hydrocarbon sector, and limited monetary policy flexibility.

The negative outlook reflects the S&Ps view of risks to Kazakhstan`s external and monetary profiles over the next 24 months, in the current weak and volatile global commodity environment.

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