Outlook on credit rating of Azerbaijan may be upgraded

Baku. 30 March. REPORT.AZ/ The outlook on credit rating of Azerbaijan can be increased soon by international rating agencies.

Analytical Group of Report informs, the reason is monetary policy carried out by Central Bank of Azerbaijan (CBA) and reduction in budget costs since the last quarter of 2016. Thus, CBA has managed to reduce manat mass by deposit auctions deposit auctions and note sales. As a result, the money supply in circulation as of February 1, 2017 amounted to 6 541 mln AZN which is 6% less than the same period of January 1. However, this is 32% more than the minimum threshold of last two years.

Another factor is the budget deficit to GDP ratio made 0.4% at the end of 2016. Thus, international rating agencies have expected higher budget deficit in Azerbaijan. Above mentioned two factors show that relative financial stability has been restored in Azerbaijan.

Analytical Group of Report expects that taking into account the possibility of oil prices at 60 USD / barrel level and continuation of financial stability in Azerbaijan 3 international rating agencies - Moody's, S&P and Fitch will lift Azerbaijan’s "negative" outlook to "stable".