S&P Global affirms Azerbaijan ratings at BB+/B

International rating agency S&P Global Ratings has affirmed Azerbaijan's short-term and long-term local and foreign currency issuer default ratings at BB+/B.

APA reports that the agency kept the outlook on the country stable.

S&P noted that the stable outlook reflects expectations that despite the decline in oil production in the medium term, Azerbaijan's significant fiscal and external buffers will protect the economy from any new trade shocks.

Azerbaijan's strong fiscal and external stock positions support the sovereign ratings.

“The government will have access to liquid assets of nearly 70 per cent of GDP through 2027 and that gross general government debt will stabilize around 20 per cent of GDP. We expect Azerbaijan will continue to run twin fiscal and current account surpluses over the next three years, which is based on our projected oil prices of $85 per barrel (/bbl) on average for the remainder of 2024 and $80/bbl thereafter".