Baku, Azerbaijan, Jan.31
By Azad Hasanli - Trend:
Standard & Poor's Ratings Services confirmed the international credit rating of Azerbaijan at the investment level "BBB-" with a "negative" outlook, said the report of the ministry of finance of Azerbaijan, published on its website Jan.30.
Azerbaijan has a very low external debt level and a quite strong fiscal and external position (assets), according to the rating.
"Despite the sharp drop in oil prices on world markets, Azerbaijan will maintain its strong external position in subsequent years as well," said the statement of the rating agency. "Although the number of the current operations, most of which fall on the sale of hydrocarbons, is likely to reduce, it (number of current operations) will remain at a positive level in the end."
In addition, the agency's analysts believe that the launch of the Southern Gas Corridor pipeline and the second stage of Shah Deniz field development will ensure economic development and the growth of foreign exchange earnings in the medium term in the run-up to the stabilization of oil production.
S & P explains the change of the outlook to "negative" by the fact that if Azerbaijan does not take preventive measures, the sharp fall in oil prices in the world can lead to a possible weakening of the current fiscal and external position of the country.
Azerbaijan is one of two countries in the CIS, which retained the investment credit rating of Standard & Poor's.