Kazakhstan’s sovereign credit score was raised one notch at Moody’s Ratings, which highlighted government efforts to improve the business climate and diversify the economy away from oil and gas, Report informs via Bloomberg.
The country’s long-term foreign-currency rating was lifted to Baa1 with a stable outlook, Moody’s said. The decision “reflects balanced risks” as reforms may make the country more attractive for investment while there is potential for a deterioration in regional geopolitics and secondary sanctions.
The rating change comes as the nation is considering the sale of benchmark dollar bonds for the first time since 2015, Bloomberg reported last month.
Kazakh President Kassym-Jomart Tokayev has vowed to reduce the state’s role in the economy of Central Asia’s biggest energy producer, while also seeking to raise some taxes. The government has outlined measures to attract investment, minimize bureaucracy and revise outdated legislation, according to Moody’s.
“Should ongoing institutional and economic reforms sustain, consequent improvements in the business environment would further strengthen Kazakhstan’s economic competitiveness,” Moody’s said.