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Moody's completes periodic review of ratings of Azerbaijan

18 December 2020 09:47 (UTC +04:00)

Moody's Investors Service ("Moody's") Moody's has completed the periodic review of a group of issuers that includes Azerbaijan and may include related ratings, APA-Economics reports citing Moody's.

The review did not involve a rating committee and the publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future; credit ratings and/or outlook status cannot be changed in a portfolio review and hence are not impacted by this announcement.

“The credit profile of Azerbaijan (issuer rating Ba2) reflects the country's "ba3" economic strength, which balances moderate wealth levels against the economy's significant exposure to hydrocarbons; its "b2" institutions and governance strength that takes into account weaknesses in control of corruption and rule of law, as well as limited voice and accountability, balanced against gradually increasing monetary and fiscal policy credibility and effectiveness from a low base; the government's "a2" fiscal strength underpinned by the country's strong net creditor position, as the size of sovereign wealth assets, covers all of the government's direct debt and guarantees, notwithstanding the high share of foreign currency debt; and its "ba" susceptibility to event risks driven by persistent geopolitical tensions with Armenia,” reads the publication.