Baku, Azerbaijan, May 15
By Leman Zeynalova - Trend:
RAEX-Europe assigned ‘BB+’ sovereign government credit rating (SGC) to Azerbaijan in national currency (Sufficient level of creditworthiness of the government) and ‘BB+’ in foreign currency (Sufficient level of creditworthiness of the government), reads the report of RAEX-Europe, exclusively presented by Trend.
The rating outlook is stable which means that in the mid-term perspective there is a high probability of maintaining the rating score.
“The ‘BB+’ sovereign government credit ratings assigned to Azerbaijan reflect sufficient level of creditworthiness due to a strong fiscal position supported by substantial amount of accumulated national reserves. Moreover, favorable oil prices significantly improved the trading balance and stabilized the local currency,” reads the outlook.
Nevertheless, according to RAEX-Europe, high concentration of the economy in one single industry (oil & gas) and weak asset quality of the banking system, are the main factors constraining the rating.
The stable outlook indicates high probability that the rating will stay at the same level in the mid-term perspective.” – said Olena Kolokolova, Rating Analyst of RAEX-Europe.