Fitch confirms Kazakhstan’s rating as “BBB+” with stable outlook

Almaty. May 12. Silkroadnews - Fitch Ratings confirms long-term Issuer Default ratings (IDRs) for For foreign an and national Kazakh currency at “BBB=” and “A-“ levels respectively with “stable” outlook, as international rating agency informs.
As reported, Kazakhstan has a strong state balance, low foreign debt and the third largest net foreign assets of the state among the “BBB” rated countries. Assets are estimated at 42% of GDP and are maintained by the abundance of natural resources.
“Real GDP growth was at 6% level in 2013, which is one of the highest among the ”BBB” rated countries. Fitch is anticipating this growth to somewhat slow down in 2014. Much of this growth can be attributed to private spending ever since 2012. At the same time, there is stagnation of export. Negative effects of tenge devaluation on real disposable incomes and slow growth of bank lending will somewhat decrease consumer spending”, the message notices.
“There is a high level of natural resource dependency. Oil and gas constitute 70% of country’s exports. If one counts, metals and ores in, natural resources make up no less than 90% of exports”, the message states.
Fitch’s “stable” outlook signifies good balance of positive factors and risks that is present at the moment.