Moody's Investors Service (Moody's) has completed the periodic review of a group of issuers that includes Azerbaijan and may include related ratings through a discussion held on May 17, Report informs referring to the Moody’s website.
The review did not involve a rating committee, and this publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Credit ratings and/or outlook status cannot be changed in a portfolio review and hence are not impacted by this announcement, Moody’s said.
The credit profile of Azerbaijan (issuer rating Ba2) reflects the country's "ba3" economic strength, which balances moderate wealth levels against the economy's significant exposure to hydrocarbons; its "b1" institutions and governance strength that takes into account gradually increasing monetary and fiscal policy credibility and effectiveness; the government's "a1" fiscal strength underpinned by the country's strong net creditor position, as the size of sovereign wealth assets covers all of the government's direct debt and guarantees, notwithstanding the high share of foreign currency debt; and its "ba" susceptibility to event risks driven by persistent geopolitical tensions with Armenia over the Nagorno-Karabakh.
This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.