Fitch Maintains Kazakhstan’s ‘BBB’ Credit Rating with Stable Outlook

Fitch Ratings has reaffirmed Kazakhstan’s long-term foreign-currency Issuer Default Rating (IDR) at 'BBB' with a stable outlook.

The announcement, released on Tuesday, was confirmed by the country’s National Economy Ministry, The Caspian Post reports, citing Kazakh media.

Kazakhstan's 'BBB' IDRs are underpinned by its large sovereign net foreign assets (SNFA) and foreign-exchange reserves, which underpin its financing flexibility, and low government debt, said Fitch Ratings.

It expects higher oil production, driven by the expansion of the Tengiz oil field, will largely offset the impact of lower prices on revenue.

According to the agency, the recent tax code reform could narrow the fiscal deficit in the mid-term.

“Non-mining activity remains robust given ongoing fiscal and quasi-fiscal support”.

It also forecasts Kazakhstan's GG debt/GDP, including guarantees, to remain largely stable.

We do not expect the 25% tariffs announced by the US to have a material impact on Kazakhstan's economy, given the low share of the US in Kazakhstan's trade, it said.

We see a low risk of broad-based secondary Western sanctions, it added.

Earlier, Deputy Prime Minister and Minister of National Economy Serik Zhumangarin said inflation in Kazakhstan may drop to 10% by the yearend.