BAKU, Azerbaijan, January 18. Fitch Ratings has affirmed Azerbaijan's Long-Term Foreign-Currency Issuer Default Rating (IDR) at the “BBB-” level with a "Stable" outlook, Trend reports.
“Azerbaijan's rating reflects its robust external balance sheet, the lowest level of sovereign debt among comparable countries, and financing flexibility due to the significant assets of the state oil fund. Fitch estimates sovereign foreign currency assets (83 percent of which are managed by the State Oil Fund of Azerbaijan (SOFAZ), the rest in Central Bank of Azerbaijan (CBA) reserves) at $76 billion (102 percent of GDP) in 2024. Azerbaijan's net external assets are estimated at 71 percent of GDP, which is the highest among sovereign countries with 'BBB' and 'A' ratings,” the commentary says.
The information says that the factors that could lead to an upgrade of the rating are the strengthening of economic policy and institutional capacity, successful implementation of structural reforms, and additional strengthening of the external balance.
To note, Azerbaijan's current account is projected to remain in surplus at an average of 6.2 percent of GDP in 2025-2026.