The upgrade of Kazakhstan’s credit rating is due to the continued improvement in the institutional and policy environment coupled with a steady pace of economic diversification. These factors contribute to strengthening economic stability and improving credit sustainability to the level of higher-rated countries.

On September 9, Moody’s International Rating Agency upgraded the long-term rating of the Republic of Kazakhstan from Baa2 to Baa1, outlook “Stable”. The rating assigned by the agency is the highest for all the years of independence of the republic.

The upgrade of Kazakhstan ’s credit rating is due to the continued improvement in the institutional and policy environment coupled with a steady pace of economic diversification. These factors contribute to strengthening economic stability and improving credit sustainability to the level of higher-rated countries.

The Agency notes progress in the public administration and anticorruption efforts. According to analysts, the ongoing reforms have a positive impact on political stability, civic engagement and transparency of anti-corruption measures.

Moody’s emphasizes the sound financial performance of Kazakhstan characterized by a low level and high availability of debt, as well as a balanced policy of the government to keep the budget deficit at the level of 2.5 — 3% of GDP. New reforms, including the introduction of new Budget and Tax Codes, should improve the effectiveness of fiscal policy, financial accountability and tax revenues.

The Report notes an increase in the share of non-oil sector in the structure of Kazakhstan’s economy, which reduces the country’s dependence on hydrocarbons and reduces risks associated with fluctuations in oil prices and production levels.

Moody’s experts positively assess the efforts made to improve business climate and attract investments, measures taken to create favourable business ecosystem and reduce bureaucratic barriers. The launch of the National Digital Investment Platform will accelerate administrative processes.

Moody’s analysts also note stronger prospects for Kazakhstan’s economy compared to other hydrocarbon-producing countries. According to the Agency, the ongoing reforms will contribute to strengthening the country’s competitiveness.

In addition, according to Moody’s experts, the development of the transport and logistics sector remains one of the key drivers of growth and diversification, which is due to the rapid growth in cargo transit activity along the Trans-Caspian International Trade Route (Middle Corridor). The prospects of the Middle Corridor will help attract foreign investors in various non-oil sectors of the country’s economy, including automotive, pharmaceuticals, food processing and construction materials.

Such upgrade of Kazakhstan’s credit rating contributes to strengthening economic and financial stability, improving the country’s reputation in the international arena, and has a positive impact on the conditions for attracting investment from capital markets and increasing the volume of foreign direct investment in the economy.