Kazakhstan’s Credit Rating Upgraded for First Time in a Decade

International rating agency S&P Global Ratings has raised Kazakhstan’s sovereign credit rating from BBB− to BBB. The upgrade means the agency now views the country’s ability to meet its debt obligations more favourably, Orda.kz reports.

S&P Global Ratings is one of the world’s largest rating agencies. It assesses the creditworthiness of governments and companies — in other words, their ability to meet financial obligations on time. Investors and lenders use these ratings to evaluate risk.

BBB is an investment-grade rating. Under the S&P classification, it indicates an adequate capacity to meet financial obligations, although the borrower remains more vulnerable to adverse economic conditions.

Ratings from AAA to BBB− are considered investment grade. The higher the rating, the lower the risk of default and the greater the confidence of investors.

• AAA — the highest possible creditworthiness;
• AA — a very strong capacity to meet financial obligations;
• A — a strong capacity to meet obligations, although the economy is more vulnerable to external risks;
• BBB — an adequate capacity to meet obligations, although economic conditions may have a greater effect on financial stability;
• BB and below — speculative grade, indicating higher risks for creditors.

The move from BBB− to BBB therefore represents a one-notch improvement. Kazakhstan remains within the investment-grade category but is now one level above its lower boundary.

According to Kazakhstan’s Ministry of National Economy, the upgrade reflects the country’s sustainable economic prospects, continued diversification and substantial external and fiscal buffers.

Original author: Rustam Muratov

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