BAKU, Azerbaijan, October 22. The outlook on Azerbaijan's Long-Term Foreign-Currency Issuer Default Rating (IDR) has been revised to ‘Positive’ from ‘Stable’, and affirmed at 'BB+', Trend reports via Fitch Ratings.
“The rating is supported by Azerbaijan's very strong external balance sheet, the lowest public debt in the peer group, and financing flexibility from large sovereign wealth fund assets,” Fitch said.
According to Fitch, if Azerbaijan’s strong public balance sheet will be maintained, “for example, based on a credible medium-term fiscal strategy, stronger institutional safeguards to the fiscal rule, or prolonged high energy prices”, this will lead to a positive rating upgrade for the country.
Moreover, further strengthening of the external balance, for example, due to sustained high energy prices, as well as improving the efficiency of Azerbaijan's policy, including the exchange rate policy, to manage external shocks and reduce macroeconomic instability, may also positively affect the rating.