BAKU, Azerbaijan, February 26. The performance of the Azerbaijani banking sector has been bolstered since 2019 by a reduction in dollarisation and an improvement in asset quality, Trend reports via Fitch Ratings report.
According to the report, political or geopolitical developments that accentuate external vulnerabilities and policy weaknesses in the Southern Caucasus region are highly pertinent to the sovereign credit profiles of Georgia (BB/Negative), Armenia (BB-/Stable), and Azerbaijan (BBB-/Stable).
"Azerbaijan’s robust external balance sheet continues to support its credit rating. 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," the report pointed out.