Fitch Ratings confirms Azerbaijan's rating at 'BB+'

Fitch Ratings confirms Azerbaijan
# 17 February 2024 07:40 (UTC +04:00)

Fitch Ratings, the international rating agency, has confirmed Azerbaijan's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+' with a Positive Outlook, APA reports via the agency.

The Agency noted that the rating is supported by Azerbaijan's very strong external balance, low public debt and high financial flexibility due to the large assets of the sovereign fund.

“The current account surplus has halved to 14.8% of GDP in 2023, but remains the highest in the BB category. Despite falling oil prices (oil and gas revenues account for 90% of total exports), we expect surpluses to remain strong in 2024-2025. Sovereign currency assets rose to $69.8 billion in 2023, 80% of which are owned by the State Oil Fund of the Republic of Azerbaijan (SOFAR), reflecting still high energy revenues and record high returns in SOFAR's investment portfolio. Azerbaijan's net sovereign asset position, estimated at 67% of GDP in 2023, will remain stable in 2024-2025, which is the highest indicator among the same group of countries," added Fitch.