National Bank of Kazakhstan: change of rating does not affect exchange rate

The National Bank of Kazakhstan does not expect that the credit rating downgrade of the Republic by Standard & Poor's Ratings Services will have a direct negative impact on the exchange rate, Deputy Head of Monetary Operations and Asset Management at the National Bank of Kazakhstan, Zhaslan Madiev said.

Yesterday S&P lowered its long-term foreign and local currency sovereign credit ratings on the Republic of Kazakhstan to 'BBB' from 'BBB+'. The ratings company also cut the grades of Oman and Bahrain.

"The National Bank does not expect a direct negative impact on the exchange rate due to a decrease in the credit rating. The high accumulation of foreign reserves, low public debt and lack of refinancing risk for the public sector are the most important factors of the high creditworthiness of Kazakhstan, " Madiev said.

"The program of the Government's National Bank of Kazakhstan for the diversification of funding and expansion of the investor base helps to strengthen the position of Kazakhstan in the framework of maintaining a high credit rating of the country," RIA Novosti cited Madiev as saying.