Fitch Ratings has affirmed Azerbaijan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+' with a Positive Outlook, Report informs referring to the rating agency’s website.

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

“The current account surplus will decline to 19% of GDP in 2023, but remains the highest in the 'BB' category. We expect surpluses in double digits in 2024-2025 despite lower oil prices. We therefore forecast sovereign foreign-currency assets will increase to $68 billion in 2023, 82% held by SOFAZ.

We project Azerbaijan’s net sovereign asset position to increase by 14pp to 63% of GDP in 2023 and 72% by 2025, the highest in the peer group.”