Fitch affirms Azerbaijan at 'BB+'
Baku, September 16, AZERTAC
Fitch Ratings has affirmed Azerbaijan's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+' with a Positive Outlook.
The rating is supported by a very strong external balance sheet, the lowest public debt in its peer group, and financing flexibility from large sovereign wealth fund assets.
“The current account surplus will decline to 19% of GDP in 2023, but remains the highest in the 'BB' category.
We expect surpluses in double digits in 2024-2025 despite lower oil prices. We therefore forecast sovereign foreign-currency assets will increase to USD68 billion in 2023, 82% held by SOFAZ, reflecting still-high energy revenues and investment portfolio recovery. We project Azerbaijan's net sovereign asset position to increase by 14pp to 63% of GDP in 2023 and 72% by 2025, the highest in the peer group,” Fitch Ratings said.
Other news in this section
