One of the main factors supporting Azerbaijan’s sovereign rating is the government’s very strong balance-sheet position compared with other similarly rated countries and oil exporters, Erich Arispe Morales, Senior Director and Head of Sovereign Ratings for Eastern Europe at Fitch Ratings, said at the “Fitch in Azerbaijan” event held in Baku, APA-Economics reports.
He noted that Azerbaijan’s external finance position is also an important strength from a ratings perspective.
“As a result of the accumulation of assets by the state both at the Central Bank of Azerbaijan and the State Oil Fund, external finance indicators are, by a number of measures, quite favorable for an oil-exporting country. Therefore, we apply a one-notch positive adjustment to external finance indicators,” Morales said.
According to him, low public debt and financing flexibility are also additional qualitative strengths for Azerbaijan’s public finances.
At the same time, Fitch believes that certain structural constraints remain in Azerbaijan’s credit profile.
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