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Fitch's outlook on Azerbaijan's rating positive for its Eurobonds - Gazprombank

Finance Materials 20 May 2021 09:49 (UTC +04:00)
Fitch's outlook on Azerbaijan's rating positive for its Eurobonds - Gazprombank

BAKU, Azerbaijan, May 20

By Zeyni Jafarov - Trend:

A positive effect on Azerbaijan's sovereign Eurobonds can be expected from the revision by the Fitch Ratings international rating agency of the forecast on the country's rating from ‘negative’ to ‘stable’, Gulnara Haydarshina, Deputy Head of the Market Analysis Department of Gazprombank, told Trend.

According to Haydarshina, the key arguments in favor of revising the rating are favorable conditions on the hydrocarbon market and stabilization of the situation in the domestic foreign exchange market with a high level of international reserves.

“Strong sovereign balances are maintained in Azerbaijan amid a favorable situation on the hydrocarbon market. In this regard, Fitch notes that the risks for the national currency and macroeconomic stability have been weakened. Along with this, the agency noted the low risk of the third wave of COVID-19 in Azerbaijan,” she stressed.

The deputy head of Gazprombank's Market Analysis Department noted that Fitch was the last of the leading rating agencies to revise the outlook on Azerbaijan's rating for the better this year.

Thus, in January the Standard & Poor's (S&P) agency had already revised the forecast for ‘stable’ from ‘negative’ on the sovereign rating of Azerbaijan, and in April the forecast on the rating from ‘stable’ to ‘positive” was raised by the agency Moody's.

The Fitch agency, following the planned revision, confirmed Azerbaijan's rating at ‘BB+’, changing the forecast from ‘negative’ to ‘stable’.

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