Fitch raised Azerbaijan’s long-term foreign and local currency issuer default ratings to BBB- from BB+. It also upgraded Azerbaijan’s country ceiling to BBB- from BB+ and raised its short-term foreign currency IDR to ‘F3’ from ‘B’. The sovereign rating is now investment grade.
Azerbaijan, which relies on oil revenue to generate more than a third of its economic output and more than 90 percent of exports, boasted a current account surplus of 20.7 percent of gross domestic product last year and inflation of 1.5 percent, according to Fitch.
Still, Azerbaijan’s oil reserves will be depleted in about 18 years, compared with about 54 years in Kazakhstan, Fitch said.
“The relatively limited life span of the oil windfall underscores the importance of both prudent fiscal management and diversification of the economy,†Fitch said.
Rating of Fitch rating for CIS countries:
Emitent | Long-term default rating in foreign currency | Long-term default rating in national currency | Forecast | Short-term default rating in national currency | Country limit | Dates |
Russia | BBB | BBB | Stable | F3 | BBB+ | 22.01.2010 |
Azerbaijan | BBB- | BBB- | Stable | F3 | BBB- | 20.05.2010 |
Kazakhstan | BBB- | BBB | Stable | F3 | BBB | 16.12.2009 |
Armenia | BB- | BB- | Stable | B | BB | 13.08.2009 |
Georgia | B+ | B+ | Stable | B | BB- | 26.08.2009 |
Ukraine | B- | B- | Stable | B | B- | 17.03.2010 |
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