Moody's increases ratings for C Asia's biggest state in backdrop of reforms

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 Monday in the backdrop of economic reforms being undertaken in the country.

In fact 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.



"Having increased from around three-quarters to around 84% of the economy in the past decade, we expect the non-oil sector to materially lessen Kazakhstan’s economic dependence on hydrocarbons. Over the past year, non-oil sectors continued to underpin growth with notable performance from the ICT, transport and manufacturing sectors. Such progress in diversification fosters greater resilience to fluctuations in oil prices and production, which has been effective in maintaining economic and financial stability through recent shocks. Developments in the transportation and logistics sector continue to be one of the key drivers of growth and diversification, driven by rapid growth in cargo transit activity across the Trans-Caspian International Trade Route,” according to Moody's statement.

The Kazakh government has claimed that it continues advancing efforts to improve the business climate and attract investments. The government of Kazakhstan outlined several measures in its National Investment Policy aimed at fostering a favorable ecosystem, including tax and non-tax benefits, the depreciation of bureaucratic barriers and the revision of outdated legislation.


A National Digital Investment Platform was also created and is expected to launch by the end of the year. The platform, managed by the Investment Committee seated within the Ministry of Foreign Affairs, allows investors to identify challenges and, according to Moody’s, helps expedite administrative processes related to their investments.