S&P affirmed the ratings of Kazakhstan at the level «BBB», outlook "negative"

Almaty. March 16. Silkroadnews - «On March 13, 2015, Standard & Poor 's Ratings Services affirmed the rating "BBB" in foreign and local currency of the Republic of Kazakhstan. Outlook - negative. At the same time, we affirmed the short-term sovereign credit rating in local and foreign currency at the level of "A-2". We also confirmed the national scale rating of Kazakhstan at the level of "kzAA+" ", - stated in a press release.
According to the document, Kazakhstan's ratings are supported by the cost of government assets, strong fiscal performance, and the great natural resources of the country. Moderate level of economic development is limited by the flexibility of monetary policy and high dependence on the hydrocarbon sector.
According to Standard & Poor's, Kazakhstan's economy is heavily dependent on the oil sector. It accounts for 20-30% of GDP (estimate), more than 50% of tax revenues and 60% of exports. GDP growth will slow down to 1.5% in 2015, from 4.3% in 2014, mainly due to low oil prices. Further depreciation of the national currency this year and inflation will have an impact on GDP in dollar terms.
"We also expect that the Kazakh oil production will decline slightly during 2015-2016. We expect that production in 2015 will amount to 80.5 million tons, compared to 81.8 million tonnes a year earlier. This is a consequence of delays of Kashagan. We do not provide any significant gains in production at the Kashagan oil field until 2018. When the mine reaches peak power, oil production in Kazakhstan will increase by 20%",- said in a statement.