Kazakhstan’s Credit Rating Affirmed by S&P Global Ratings
S&P Global Ratings has reaffirmed Kazakhstan’s credit rating at BBB- with a stable outlook, citing the country’s oil and gas sector as playing a crucial role in maintaining the positive rating. Despite a decline in oil production impacting economic growth rates, GDP growth is forecasted at 3.7 percent by the end of the year with expectations for moderate growth in the next three years.
S&P highlights the launch of the Tengiz field expansion project in 2025 as a potential boost to oil production, though economic growth is not expected to exceed 4.5 percent. The rating agency emphasizes the oil sector’s importance for economic growth while also noting vulnerabilities related to geopolitical factors in oil transportation. Potential rating improvement is linked to reforms, non-oil sector growth, decreased geopolitical risks, and increased political stability.
In 2023, Kazakhstan saw economic growth of 5.1 percent with a significant increase in investments and attracted foreign direct investment. S&P’s insights shed light on the country’s economic landscape, showcasing opportunities as well as challenges in achieving sustainable growth.