Fitch confirmed rating of Azerbaijan at BB level, forecast stable
The Fitch Ratings rating agency confirmed sovereign ratings of Azerbaijan in foreign and national currency at the BB level (as it was in 2004), the forecast is stable. At the same time the agency confirmed the short-term rating at the B level and the rating of the country limit, BB.
Last week the draft report was submitted to the consideration by the Azerbaijan government and its quick publication caused surprise with financiers.
The Azerbaijani side thinks, the ratings awarded do not reflect the realities. By the current GDP tempos growth which affects the development of all sectors of economy the rating bar is to be minimal at the BB+ level, due to which it asked the agencys experts to revise it.
The Fitch Ratings report notes the countrys rapid economic growth and the export volume increase. The agency experts consider, these tendencies will facilitate further improvement of the sovereign solvency and increase of ratings of Azerbaijan.
Besides, factors supporting the Azerbaijan sovereign rating are ongoing development of large oil and gas fields in the country and moderate indices of the state arrears.
Short-term perspectives of the oil industry development are still exclusively positive. The oil extraction volume in Azerbaijan by 2010 is expected to grow to 1,2 million barrels a day.