Fitch affirms Azerbaijan at BB+ with a Positive Outlook

Fitch Ratings has affirmed Azerbaijan's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+' with a Positive Outlook.

The rating is supported by Azerbaijan's very strong external balance sheet, the lowest public debt in its peer group, and financing flexibility from large sovereign wealth fund assets.

Sovereign foreign-currency assets grew by USD5.9 billion in 2022 to USD58.0 billion, 85% of which is held by the sovereign oil fund (SOFAZ) where higher energy revenues more than offset a 5.2% loss on its investment portfolio. Fitch projects Azerbaijan's net sovereign creditor asset position grows 10.9pp in 2023-2024 to 68.7% of GDP, comfortably the highest in the rating peer group.