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S&P: Azerbaijan's credit fundamentals may improve in the medium term

25 December 2025 11:30 (UTC +04:00)

Under conditions of reduced geopolitical risks and the preservation of fiscal buffers, Azerbaijan’s credit fundamentals could improve in the medium term, APA-Economics reports, citing the international rating agency S&P Global Ratings.

It was noted that Azerbaijan has exceptionally strong fiscal and external buffers. According to the agency’s assessment, these opportunities are supported by large-scale assets managed by the State Oil Fund of Azerbaijan (SOFAZ). A consistently positive overall net government asset position and low government debt enhance the economy’s resilience to shocks, mitigating the impact of fluctuations in hydrocarbon prices and maintaining macroeconomic stability.

S&P notes that under conditions of reduced geopolitical risks and preserved fiscal buffers, Azerbaijan’s credit fundamentals could improve in the medium term: “Although an official peace agreement has not yet been finalized, recent commitments and initial implementation steps indicate that the most constructive phase in bilateral relations in decades is taking shape. This process is expected to improve the investment environment and increase the potential for economic growth.”