Among the developing European countries in 2023, Azerbaijan is one of the two countries where the positive forecast for the rating is continuous, Fitch Ratings international credit rating agency said, APA-Economics reports.
Fitch noted that despite high risks in the developing countries of Central and Eastern Europe (CCE), economic activity continues to change positively.
The outlook balance in the region is positive. Six sovereigns have Positive Outlooks and three Negative; one sovereign is rated at a level for which we do not have Outlooks. This is a nearcomplete reversal of the balance at end-2022. The Negative Outlooks are all in CEE. Two (Czech Republic and Slovakia) are carried over from 2022 as risks from the energy crisis have evolved into public finance pressures. Hungary’s Outlook reflects concerns over policy credibility. The Outlooks on North Macedonia, Romania and Turkiye were all revised to Stable from Negative in 2023.
The Positive Outlooks are more broadly dispersed and only two remain from end-2022. One is Bulgaria, which retains a Positive Outlook owing to progress towards euro accession. The other is Azerbaijan, reflecting the impact of higher energy revenue on the balance sheet; Turkmenistan has a Positive Outlook for the same reason. The other Positive Outlooks capture improving public finances in Croatia and Latvia and the spillovers from an inflow of funds and labour into Georgia.
The uncertainty created by significant geopolitical risks underpins the neutral sector outlook.
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