Moody's affirms Azerbaijan's Ba2 rating

Moody's Investors Service ("Moody's") has today affirmed the Government of Azerbaijan's long-term issuer and senior unsecured debt ratings at Ba2 and maintained the stable outlook, Report informs.

At the same time, Moody's has affirmed the backed senior unsecured bond rating of Southern Gas Corridor CJSC (SGC), that benefits from an explicit guarantee from the government, at Ba2 and maintained the stable outlook.

Azerbaijan's long-term local currency bond and deposit ceilings remain unchanged at Ba2. The Ba2 long-term foreign currency bond ceiling and Ba3 long-term foreign currency deposit ceiling are also unchanged.

The key drivers of the rating affirmation are:

1. A growing net creditor position of the government, bolstered by ongoing fiscal reforms;

2. Banking sector risks that are gradually receding, although the financial system remains fragile;

3. Limited prospects for economic diversification, and institutional constraints that limit the shock absorption capacity of the economy