«Fitch Ratings» affirms Kazakhstan's credit rating at 'BBB' with a 'stable' outlook
The rating Agency "Fitch Ratings" 19 Feb 2021 has confirmed the credit rating of Kazakhstan at the 'BBB' with stable Outlook, according to the official website of the Prime Minister.
According to the agency, the stable rating of Kazakhstan reflects the high level of stability of the country's economy. The rating Agency notes that despite the uncertainty associated with oil prices and the spread of the coronavirus epidemic in the world, the country continues to have a low level of public debt and a significant amount of fiscal reserves necessary to mitigate existing and potential external shocks.
A positive factor in the sustainability of credit ratings is also the improvement in the quality of public institutions. The rating agency "Fitch" noted the role of the real sector, including manufacturing, construction and agriculture in ensuring the sustainability of the national economy in 2020.
According to the agency's estimates, the economic growth rate in 2021 will be 3.5%. The floating exchange rate policy implemented by the National Bank, as noted by Fitch Ratings, allowed to absorb shocks, and the flexibility of the tenge exchange rate was a noticeable improvement in the mechanism of economic policy since the fall in oil prices in 2014-2015.
Fitch Ratings cites the further implementation of structural and institutional reforms aimed at increasing the predictability and effectiveness of economic policy, as well as the continuation of measures to diversify the economy and increase the country's fiscal reserves as key factors for the subsequent increase in the sovereign credit rating of Kazakhstan.