Kazakhstan gets better rating than Russia from Fitch.

By bne IntelliNews November 21, 2012
Fitch upgraded Kazakhstan's long-term foreign currency issuer default rating (IDR) to 'BBB+' from 'BBB' and long-term local currency IDR to 'A-' from 'BBB+'. The outlooks are stable. Thus, Kazakhstan received better ratings than Russia from Fitch. The agency also upgraded the country ceiling to 'A-' from 'BBB+' and the short-term foreign currency IDR to 'F2' from 'F3. The action reflects the continued strengthening of Kazakhstans sovereign external balance sheet, low level of government debt and healthy growth prospects as well as tentative steps towards cleaning the banking system, Fitch has explained. The agency also considers that sovereign assets saved in the National Oil Fund gives a cushion against economic shocks. The agency expects Kazakhstans trade surplus at around 3% of GDP in 2013 (if 1 barrel of oil cost USD 100). Fitch also projects the general government budget to remain in surplus even if oil prices decreases to USD 80 per 1 barrel. At the same time, Fitch expects Kazakhstans GDP not to reach 5% this year due to a slowdown in the extractive sector and in external demand and due to the impact of a drought on agriculture. The agency however noted that domestic demand partly compensated thanks to strong wage growth and moderate inflation. Fitch expects GDP to pick up in 2013-2014 as oil and mining production will increase based on capacities increases underway. The agency also noted that a positive rating actions would likely require a substantial strengthening of the sovereign and external balance sheets over the medium term.
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
    9 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
    6 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. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    9 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    27 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    1 month 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
    29 days ago
  5. Saudi Arabia to scale back plans for Neom city
    16 days ago

Reports

Dismiss