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New York, Nov.21 (ANI): Standard and Poors, the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research, data, and valuations, has upgraded Kazakhstan’s rating by one notch from BBB- to BBB.
The promotion reflects solid fiscal performance and fiscal policy tightening. According to the agency, it expects the budget surplus to spike to 5.9 percent of the country's GDP (before channeling to the National Fund).
Experts share this optimism and forecast a very small budget deficit of 0.5 percent of GDP – after the National Fund receives extra oil revenues.
The National Fund is expected to reach 13 billion dollars by 2006-end, or 17 percent of GDP, which will create a very solid financial cushion for any potential future external shocks.
The upgrade was expected in view of the country’s strong economic performance and concrete progress in structural reforms
The upgrade is expected to have a strong effect on markets and will strengthen investor optimism toward medium- and long-term projects.
In 2008-09, the country could cross the A-boundary, which would have a more dramatic effect. (ANI)
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