(MENAFN- Trend News Agency) BAKU, Azerbaijan, April 1. Fitch Ratings, the
international rating agency, has confirmed Azerbaijan's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB+' with a
Positive Outlook, trend reports via the agency.
"The rating is supported by a very strong external balance of
Azerbaijan, the lowest public debt in the group of analogs, as well
as the funding flexibility via major assets of the sovereign wealth
fund," the agency said.
According to the agency, the Positive Outlook reflects the
enhancement of external and fiscal buffers due to high energy
prices, as well as greater restrictions on spending, which will be
supported by the consistent application of the restored budget
rule.
In addition, Fitch forecasts an increase in the net asset
position of Azerbaijan's sovereign creditors by 10.9 percentage
points in 2023-2024 to 68.7 percent of GDP, which is the highest
indicator in the rating peer group.
The agency also notes a steady improvement in the banking sector
indicators of Azerbaijan. Moreover, Fitch analysts believe that the
supervision of banking regulators is improving.
"The ratio of overdue loans at the end of 2022 decreased to 2.9
percent (6.1 percent at the end of 2020), while the return on
average capital was 17.3 percent. At the same time, the adequacy
capital of the first level that is at the sufficient level,
declined by 15.2 percent, while deposits and their dollarization
decreased to 48 percent in 2022", the agency said in the
statement.
Fitch Ratings Inc. is one of the world's most reliable rating
agencies. Its purpose is to deliver business intelligence to make
better decisions and reduce business risks for its clients.
MENAFN01042023000187011040ID1105926259
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.