S&P Global Ratings approves Azerbaijan's credit rating at 'BB+/B'

By Trend

S&P Global Ratings Agency has approved Azerbaijan's long-term and short-term sovereign credit ratings for liabilities in foreign and national currencies at 'BB+/B', Trend reports citing the agency.

According to the agency, the forecast for the long-term credit rating of the country is based on the end of hostilities in Azerbaijan’s Karabakh, as well as the growth of gas exports, which will support the country's balance of payments in 2022.

The agency said that in terms of fiscal and external positions, Azerbaijan is among the countries with a ‘BB’ rating. This fact is based mainly on the assets of the State Oil Fund (SOFAZ).

Besides, the agency forecasted that the ratio of liquid assets will be close to 70 percent of GDP through 2025, and that general government debt - below 30 percent of GDP.

Currently, favorable oil prices support Azerbaijan's balance of payments profiles, the agency's report noted.