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S&P Global Ratings affirms Azerbaijan's ratings

Economy Materials 8 June 2024 10:04 (UTC +04:00)
Zulfiyya Gurbanova
Zulfiyya Gurbanova
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BAKU, Azerbaijan, June 8. S&P Global Ratings has affirmed Azerbaijan's long-term and short-term foreign and local currency sovereign credit ratings at 'BB+/B', Trend reports.

According to the agency, the outlook on the ratings remains stable.

Given that 80 percent of Azerbaijan's exports are hydrocarbons, S&P Global Ratings anticipates that the country will be able to sustain a current account and budget surplus from 2024 through 2027.

The assessment remains unchanged because the agency believes that Azerbaijan's large fiscal and external reserves will cushion the blow to the economy that could come from shifts in trade policies.

The reduction of geopolitical risks and the accumulation of additional fiscal reserves are also factors that could lead to an upgrade in the ratings.

Good fiscal and external positions bolster Azerbaijan's sovereign ratings. Azerbaijan is expected to maintain its twin surpluses in the fiscal and current accounts in 2024 and beyond, respectively, assuming oil prices of $85/barrel and $80/barrel.

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