Moody’s could lower Kazakhstan

Moody's Investors Service said it placed Kazakhstan's Baa2 government bond and issuer ratings on review for downgrade.

The senior unsecured medium-term note program rating at provisional Baa2 was also placed on review for downgrade.

The purpose of the ratings review is to allow Moody's to assess the extent of the impact of the further sharp fall in oil prices, which it expects to remain low for several years, on Kazakhstan's economic performance and its government balance sheet in the coming years.

Kazakhstan is highly dependent on hydrocarbons to drive economic growth and to finance government expenditure. Oil and gas account for 74% of goods exports and roughly 23% of GDP. It also provides around 42% of consolidated government revenues.

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