Moody's: Kazakhstan debt metrics strong

In its annual credit report on Kazakhstan, Moody's Investors Service said the government's Baa2 ratings and stable outlook reflect relatively strong debt metrics grounded in large foreign-currency reserves and low susceptibility to serious macroeconomic shock.

The country's medium economic strength, low institutional strength and medium government financial strength reflect a low, but rapidly growing GDP/capita, weak governance and rule of law and an easy debt servicing burden combined with some stresses in raising external liquidity, Moody's said.

The key issues for 2009 will be the authorities' ability to deal with a widening current account deficit and weakening currency, the agency said, and the banking system's ability to roll its large foreign-currency borrowings over.

Nevertheless, Moody's said government debt is minimal and the low investment-grade credit rating is expected to be able to withstand such developments.

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