The sovereign risk rating is at BB following an upgrade in our Septemberssessment. The rating is underpinned by generally favourable fiscal dynamics, including a relatively low public debt burden and budget deficit. However, Kazakhstan's high dependence on fiscal revenue from the oil sector, potential commitment to pay questions in the event of an economic downturn and a slowing rate of acquisition of foreign-exchange reserves, which are largely drawn from oil revenue, drags on the rating.