Fitch affirms credit rating of Azerbaijan's Mortgage and Credit Guarantee Fund

Fitch Rating has affirmed Mortgage and Credit Guarantee Fund of the Republic of Azerbaijan's (MCGF) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BBB-', Report informs referring to Fitch.

The Outlooks are Stable.

"Fitch views MCGF as a government-related entity (GRE) with strong links to Azerbaijan and an important policy role in the provision of affordable housing and fostering business development by facilitating financing for small and medium enterprises (SMEs). Under its GRE Criteria, Fitch equalizes MCGF's IDRs with those of Azerbaijan.

The provision of affordable housing is one of the government's strategic priorities. MCGF is the only entity entitled to provide subsidized mortgages in the country and has no potential substitute. MCGF's management estimates that the fund's share of the country's mortgage loans to households is around 80%.

As a state agent implementing the national housing policy, MCGF channels low-cost funding to the mortgage market, making loans affordable," reads the report.