Azerbaijan achieves investment grade rating as non-oil reforms pay off, minister says

Azerbaijani Economy Minister Mikayil Jabbarov announced on X that Azerbaijan’s sovereign credit rating has been upgraded to investment grade (Baa3) by Moody’s, highlighting the country’s growing economic stability and diversification efforts under President Ilham Aliyev’s leadership.

“The achievements of Azerbaijan’s economic and financial bodies under the leadership of President Ilham Aliyev continue to gain recognition at the international level. The recent upgrade of Azerbaijan’s sovereign credit rating to investment grade (Baa3) by Moody’s is a testament to the effectiveness of reforms aimed at fostering nonoil sector growth, increasing revenue diversification, and significantly reducing the state budget’s dependence on hydrocarbon revenues," Jabbarov wrote on X, per Caliber.Az.

He emphasized that wide-ranging reforms have “ensured macroeconomic stability and fiscal sustainability, deepened economic diversification, accelerated the reconstruction of the liberated territories, and mobilized their economic potential.” The Minister also noted that Azerbaijan’s position as a strategic transport hub “generates tangible socio-economic benefits” on both regional and global scales.

Jabbarov further highlighted the role of systematic reforms in the financial sector and transparency measures: “Robust stability has been established through systematic reforms in the banking and financial sectors and in monetary policy; the disciplined application of budget rules; and comprehensive tax reforms underpinned by transparency and accountability.” He added that these steps have led to a “marked improvement in Azerbaijan’s sovereign credit metrics.”

The Minister concluded by pointing to a positive investment climate: “Improvements in the investment climate and business environment are attracting increasing foreign interest... laying the foundation for large-scale investment projects that support long-term sustainable growth and further economic diversification.”

By Khagan Isayev