International rating agency S&P Global Ratings has upgraded Kazakhstan's sovereign credit rating from 'BBB-' to 'BBB'. The outlook on the rating is 'Stable'. This was reported by Qazaqyia.kz citing Kursiv Media.
Kazakhstan has achieved this level for the first time since 2016.
Reasons for the upgrade
The agency explained the decision by the country's sustainable economic prospects, ongoing diversification, and significant external and budgetary reserves.
According to S&P, Kazakhstan's economy will continue to grow in the medium term despite external risks and fluctuations in global commodity prices.
Economic forecasts
Analysts expect real GDP growth of 5.1% by the end of 2026. At the same time, according to the agency's forecast, Kazakhstan will maintain relatively high growth rates among oil-exporting countries.
Investment programs
S&P also noted a large-scale investment program aimed at developing raw materials processing and infrastructure. In particular, financing projects through the Baiterek holding should help increase investment to 30% of GDP.
Fiscal policy
The agency believes that curbing budget expenditure growth and expanding the tax base will gradually reduce the budget deficit.
External position
S&P separately highlighted Kazakhstan's strong external position. A significant volume of foreign currency assets exceeds moderate external debt, allowing the country to maintain its status as a major external creditor.
Banking sector
The agency also positively assessed the state of the banking sector. According to analysts, strengthened regulation and supervision have increased banks' resilience to macroeconomic shocks and reduced systemic risks related to asset quality.
Previously, Kazakhstan's sovereign credit rating was at 'BBB-'.