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Moody’s: Kazakhstan Adapted to Low Oil Prices

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The international rating agency Moody’s confirmed Kazakhstan’s sovereign rating at Baa3 and raised the outlook for the country’s future rating from negative to stable.

The agency experts explain the increase in the forecast of the country rating by the fact that, in their opinion, the economy, the budget and the banking system of the republic have gradually adapted to a structural decline in oil prices.

“Moody’s positively assessed the recapitalization of the banking system, launched in the country, within which the authorities are ready to support the banks for $ 1.5 billion,” the agency notes.

Moody’s experts focus on state assistance to commercial banks, because, in their view, the shock of the global financial crisis of 2008-2009 for Kazakhstan’s economy was reinforced by the fact that ‘several Kazakhstan banks defaulted and were nationalized.’

Analysts of the agency believe that in the coming years, Kazakhstan will be able to stabilize the assets of the National Fund – a buffer to save the economy in the event of a fall in prices – at $ 60 billion.

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