Fitch Affirms Azerbaijan Mortgage Fund at 'BBB-'

Fitch Affirms Azerbaijan Mortgage Fund at
# 19 May 2014 08:58 (UTC +04:00)

Bakı – APA-Economics. Fitch Ratings has affirmed Azerbaijan Mortgage Fund under the Central Bank of Azerbaijan Republic's (AMF) Long-term foreign and local currency Issuer Default Ratings (IDR) at 'BBB-'. The Outlook is Stable.

AMF's ratings are equalised with Azerbaijan's sovereign ratings, reflecting the entity's public sector status, its tight control by the sovereign through the central bank and its important role in the government's housing finance policy. According to AMF the central bank has the duty to finance AMF (including repayment of the bonds issued), should this be needed. Fitch uses its public-sector entities rating criteria and applies a top-down approach in its analysis of AMF.

AMF was established in September 2005 as a public sector entity under the decree No. 299 of the President of the Republic of Azerbaijan. AMF's main functions are to provide long-term financing of home ownership of Azerbaijani citizens, and to attract domestic and foreign investment into mortgage financing.