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.
S&P Global Ratings expects Azerbaijan to maintain a double budget and current account surplus from 2024 to 2027, helped by favorable prices for hydrocarbons, which make up 80 percent of exports.
The stable outlook reflects the agency's expectation that Azerbaijan's substantial fiscal and external reserves will help protect the economy from potential shocks related to changes in the terms of trade.
Furthermore, it is noted that the ratings may be upgraded if geopolitical risks are reduced and additional fiscal reserves are accumulated.
Azerbaijan's sovereign ratings are supported by strong fiscal and external positions. Azerbaijan is projected to continue to post twin fiscal and current account surpluses based on assumed oil prices of $85/barrel in 2024 and $80/barrel thereafter.
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