Moody`s Raises Azerbaijan Outlook, Hinting At Upgrade From Junk
Baku, March 9 (AZERTAC). Moody`s Investors Service raised its ratings outlook on Azerbaijan to positive from stable, indicating an increased likelihood it will upgrade the oil-exporting country to investment-grade territory in the near term.
Azerbaijan, which straddles Western Asia and Eastern Europe, has been among the world`s fastest-growing economies in recent years, with gross domestic product growth of 9.3% in 2009, according to the International Monetary Fund. It has become an increasingly important supplier of oil and natural gas since becoming independent with the collapse of the former Soviet Union in 1991.
Moody`s improved outlook reflects the country`s fiscal and external accounts strengthening, thanks to the recovery of oil prices last year and "the prudent management of the revenues from those increases," Moody`s said.
The rating agency also touted Azerbaijan`s non-oil investments the government has made through its enterprise fund, which invested $125 million in more than 100 companies in 2010.
Moody`s has Azerbaijan at Ba1, its highest junk grade. It said higher sustained growth outside the oil sector and the building of larger foreign-currency reserves would further improve its view of the country. Risks include domestic and regional political deterioration.
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