S&P upgrades Azerbaijan’s banking sector rating

International credit rating agency S&P has released its latest Bank Industry Country Risk Assessment (BICRA), improving the sectoral risk component for Azerbaijan’s banking sector from level 8 to level 7.

According to Caliber.Az, S&P cited the implementation of regulatory and supervisory modernisation initiatives under the Financial Sector Development Strategy 2024–2026 as a key factor supporting the upgrade. These reforms were carried out under the leadership of Central Bank Chairman Taleh Kazimov, in line with the country’s strategic framework.

The agency noted that these initiatives bring Azerbaijan’s regulatory framework closer to international standards and highlighted that over the past three years, the Central Bank has significantly expanded the scope of its regulatory actions.