Kazakhstan, thriving on oil and gas exports, has long boasted one of Eurasia's most dynamic economies. But it seems that not even the towering Altai Mountains can shield Central Asia's economic giant from the turmoil swirling on international credit markets.

On October 8, the international ratings agency Standard and Poor's (S&P) downgraded Astana's sovereign credit rating to BBB-, the lowest investment grade category, due to funding problems in the country's financial system.

S&P blamed the downgrade on a rapid rate of borrowing by Kazakh banks, citing signs of an economic slowdown and potential obstacles to new borrowing due in part to the US subprime mortgage crisis. With the downgrade, Kazakhstan has become the only country so far to see its S&P rating fall since major turbulence over the US mortgage crisis shook world capital markets last summer.