Fitch Ratings has affirmed Azerbaijan's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook, Report informs via Fitch.
"Azerbaijan's ratings reflect a very strong external balance sheet, the lowest public debt in its peer group, and financing flexibility from large sovereign wealth fund assets.
Fitch estimates that sovereign foreign-currency assets (83% held by the Sovereign Wealth Fund of Azerbaijan (SOFAZ) with the remainder in the Central Bank of the Republic of Azerbaijan's (CBRA) reserves) rose to $76 billion (102% of estimated GDP) in 2024. Azerbaijan's net sovereign foreign asset position, estimated at 71% of GDP in 2024, is the highest among 'BBB' and 'A' sovereigns. Fitch expects fiscal policy will be consistent with maintaining robust sovereign external assets and avoiding the build-up of macroeconomic imbalances, preserving adequate policy buffers to manage oil price volatility," reads the report.