Moody's: Solid growth for Kazakhstan

In its annual report on Kazakhstan, Moody's Investors Service said the country's Baa2 government bond rating and stable outlook are supported by solid economic growth based on foreign direct investment in the energy sector, increased pipeline export capacity and a tight fiscal and monetary policy.

Kazakhstan's A2 foreign-currency country ceiling for bonds is based on its foreign-currency government bond rating of Baa2 and Moody's assessment of a low risk of a payments moratorium should the government default.

Kazakhstan's debt numbers are deceiving, Moody's said. Much of the external debt consists of intra-company loans to the energy sector, which has less risk. Much of the debt is private-sector banking debt, the agency said. The government has little debt and little reason to borrow significantly in the short-to-medium term. Any future borrowing would be mainly in local-currency, the agency added.

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