Moody's Ratings upgraded Kazakhstan's rating to "Baa1"; outlook "Stable"

/Moody's Ratings, Singapore, September 9, 2024, heading by KASE/ – The international rating agency Moody's upgraded the Kazakh government’s long- term local and foreign currency issuer ratings to Baa1 from Baa2 and changed the outlook to stable from positive on Sept. 9. Concurrently, Moody’s has upgraded the foreign currency senior unsecured debt and MTN program ratings to Baa1 and (P)Baa1 from Baa2 and (P)Baa2, respectively. The decision to upgrade the rating is driven by our assessment that ongoing enhancements to the institutional and policy framework, combined with sustained momentum in economic diversification away from hydrocarbons have and will continue to enhance Kazakhstan's resilience to shocks, thereby strengthening the credit profile to be consistent with peers at the Baa1 level. Given continued commitment to economic and institutional reforms, we expect such improvements to be sustained and credit resilience to continue to improve. The stable outlook reflects balanced risks. On the upside, ongoing institutional and economic reforms may raise Kazakhstan's attractiveness as an investment destination and accelerate the progress of economic diversification beyond Moody's current expectations. In turn, the higher growth potential of the economy and increased diversity of growth drivers will strengthen Kazakhstan's credit profile further. On the downside, a significant deterioration in regional geopolitics and the potential for secondary sanctions remain key risks. The re-emergence of domestic political risks, which would negatively impact the government’s institutional effectiveness or reform agenda, or the re-emergence of social unrest, which would dampen foreign investment and longer-term economic prospects, would also likely exert downward pressure on the rating. * The full version of the press release is available on the Moody's Ratings website. [2024-09-10]