S&P confirms Kazakhstan’s sovereign credit rating

10 September 2018 15:44 (UTC+04:00)

By Kamila Aliyeva

International rating agency Standard & Poor's confirmed Kazakhstan’s sovereign credit rating at the level of “BBB- / A-3” on September 7, the forecast is “stable”, according to the press service of the Ministry of National Economy.

The key factors supporting Kazakhstan's rating are the presence of positive balance sheet figures formed due to additional revenues to the National Fund, as well as a low public debt, the aggregate volume of which will not exceed the external liquid assets of Kazakhstan in the next 4 years, Kazinform reported.

According to analysts, the restriction of spending and significant government revenues will contribute to the balance of the budget in 2018 and beyond.

Along with this, according to the calculations of S&P experts, a small surplus is forecasted in the consolidated budget in the period up to 2021. In addition, there was a decrease in inflation from double-digit indicators in 2016 to the established corridor of 5-7 percent this year.

Currently, S&P expects that until 2021 the new Tax Code will increase the state's revenues and reduce disparities by rationalizing the regime of benefits and preferences. State infrastructure development programs will support economic growth rates in 2018-2021 and will in average 3 percent.

The forecast “stable” reflects analysts' expectations that in the next 2 years the state and external balance sheets will remain stable.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

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