Fitch Ratings Upgrades Azerbaijan's Rating To 'BBB-'

7/27/2024 2:18:32 AM

(MENAFN- Trend News Agency) BAKU, Azerbaijan, July 27. Fitch Ratings has upgraded Azerbaijan's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BBB-' from 'BB+', Trend reports.

The Outlook is Stable.

Fitch expects that Azerbaijan's sovereign foreign currency assets will approach $74 billion (98 percent of projected GDP) in 2024, which is significantly above 55 percent in 2010.

“Azerbaijan's net sovereign asset position, projected at 71 percent of GDP in 2024 (50 percent of GDP in 2010) will remain the highest among 'BBB' and 'A' sovereigns. Azerbaijan's current account surpluses will decline from a projected 9.3 percent of GDP in 2024 to 6.4 percent in 2026, but will remain the highest in the 'BBB' category, despite lower oil prices, supporting continued, albeit more moderate asset accumulation,” reads the latest report released by Fitch Ratings.

Fitch estimates Azerbaijan's net external creditor position will strengthen to 154 percent of GDP in 2024, the strongest among 'BBB' sovereigns.

Fitch expects fiscal policy will be consistent with maintaining robust sovereign external assets and avoiding the build-up of macroeconomic imbalances, preserving adequate policy buffers to manage oil price volatility. Fitch expects continued, albeit declining, consolidated fiscal surpluses and that the authorities will maintain their commitment to reducing public finances' oil dependence, by reducing the non-oil primary deficit over the medium term, despite recent changes to the 2022 fiscal rule and annual budget amendments, including higher oil price assumptions.

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