Monday March 14 2016
News Source: Global Exchanges
Focus: Credit Rating
Type: General
Country: Kazakhstan
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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