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Fitch Ratings upgrades Azerbaijan

06 February 2007 14:40 (UTC +04:00)

Fitch Ratings has upgraded Azerbaijanâ€™s foreign and national currency ratings from BB to BB+ with a stable outlook, the Finance Ministry told APA.
The Country Ceiling has been revised to BB+ from BB, while the short-term foreign currency rating is affirmed at B.
The new ratings are one point under investment rating.
Fitchâ€™s upgrade of Azerbaijanâ€™s sovereign ratings is driven by strong and sustainable economic growth, low government and external debt ratios and a growing current account surplus, underpinned by rapidly rising oil and gas production.
The completion of key energy export projects in 2005 and 2006 has driven a significant rise in hydrocarbons production, accelerating Azerbaijanâ€™s real GDP growth, which reached an estimated 35% in 2006, Fitch said.
â€œFitch is concerned that inflationary trends will continue to put upward pressure on the real exchange rate and threaten the competitiveness of the non-oil economy, as well as the improvement in living standards,â€? the agency said.
BB+ will allow the countryâ€™s debt ceiling, pave the way for access to international capital market, issue of securities etc.
Fitch assigned BB to Azerbaijan last year. /APA/