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By Stephen Nakrosis
S&P World Rankings on Friday mentioned it was reducing its outlook on Kazakhstan to destructive from steady, citing troubles with the Caspian Pipeline Consortium pipeline.
The pipeline, which the nation makes use of for about 80% of its oil exports, stays susceptible to potential disruptions, S&P mentioned. “The destructive outlook displays dangers to Kazakhstan’s oil exports by the CPC pipeline, in addition to rising debt financing prices,” S&P mentioned.
There have been various incidents this yr affecting the CPC pipeline, S&P mentioned, together with storm-related harm in March and the invention of subsea cracks on buoyancy tanks that might restrict loading.
S&P lowered its expectations for Kazakhstan’s oil manufacturing to 85.6 million tons per yr from a earlier estimate of 87.5 million tons for 2022.
S&P additionally mentioned growing reliance on home funding and rising borrowing prices may improve Kazakhstan’s debt-servicing burden.
S&P mentioned it was affirming Kazakhstan’ ‘BBB-/A-3’ sovereign credit score rankings.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
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