By Stephen Nakrosis
S&P Global Ratings said on Friday it was lowering its outlook on Kazakhstan from negative to stable, citing problems with the Caspian Pipeline Consortium pipeline.
The pipeline, which the country uses for about 80% of its oil exports, remains vulnerable to potential disruptions, S&P said. “The negative outlook reflects risks to Kazakhstan’s oil exports through the CPC pipeline, as well as rising debt financing costs,” S&P said.
There have been a number of incidents this year affecting the CPC pipeline, S&P said, including storm-related damage in March and the discovery of underwater cracks on buoyancy tanks that could limit loading.
S&P lowered its expectations for Kazakhstan’s oil production to 85.6 million tonnes per year from a previous estimate of 87.5 million tonnes for 2022.
S&P also said growing reliance on domestic financing and rising borrowing costs could increase Kazakhstan’s debt service burden.
S&P said it confirmed Kazakhstan’s sovereign credit ratings of “BBB-/A-3”.
Write to Stephen Nakrosis at [email protected]
(END) Dow Jones Newswire
September 02, 2022 5:03 p.m. ET (21:03 GMT)
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The article is in French
. SPGR lowers the prospects Kazakhstan face to the problems from the pipelines