Fitch upgrades Kazakhstans long-term foreign currency rating to BBB.

By bne IntelliNews November 22, 2011
Fitch upgraded Kazakhstans long-term foreign and local currency issuer default rating to BBB from BBB- and to BBB+ from BBB respectively. The outlook on the ratings is positive. At the same, the countrys ceiling was upgraded to BBB+ and short-term foreign currency issuer default rating was affirmed at F3. The agency noted that Kazakhstan's sovereign balance sheet has strengthened, with sovereign net foreign assets affording a growing cushion against revenue shocks, and underpinning the positive outlook. Moreover, Fitch forecasts that the government will record a surplus of 6%-7% of GDP in 2011-2013. Oil price assumptions in the budget are conservative and the government would be in surplus in 2012 even if the oil price dipped to USD 80 per 1 barrel. Mining and oil production growth underpins one of the strongest growth outlooks among the major emerging markets, thanks to credible projections of increased oil and mining output, Fitch noted. Moreover, GDP is expected to grow by 6% in 2011-13 and should be relatively resilient to slower growth in major advanced economies. The main risk comes from a severe downturn in commodity prices or external demand. The agency also considers that domestic or regional political shock could exert downward pressure on the rating. To remind you, S&P raised its rating of Central Asia's largest economy earlier this month based on a fiscal and current account surplus that emerged due to strong prices on is energy exports. Then, head of National Bank of Kazakhstan Grigory Marchenko urged the other rating agencies to raise the countrys rating.
Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Kazakhstan in talks with McDonald's.

Kazakhstan is in talks over McDonald's enter to the Kazakh market, President of the Eurasian Franchising Association, Beknur Kissikov has said. He added that the main reasons that McDonald's is ... more

Kazakhstan to establish institute for energy and energy effectiveness.

Kazakhstan will establish institute for energy and energy effectiveness, deputy PM and Minister of Industry and New technologies Aset Isekeshev has informed. The new entity should start operating ... more

Kazakhstan to diminish oil products imports from Russia.

Kazakhstan plans to diminish oil products imports from Russia, according to Kuandyk Kulmurzin Director of oil industry development department in Oil and Gas Ministry. He explained that the reason ... more

Follow Us On

Most Read

  1. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    8 days ago
  2. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  3. Don't mention the "D" word - Ukraine
    5 days ago
  4. The 'wet-bulb' set to kill hundreds of thousands of people if temperatures and humidity levels continue to rise
    3 days ago
  5. Europe unlikely to tackle Russian LNG imports anytime soon
    2 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    26 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    30 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. BRICS announce a blockchain-based payment system to create a common currency
    28 days ago
  5. Saudi Arabia to scale back plans for Neom city
    15 days ago

Reports

Dismiss