S&P Global Ratings affirmed its 'BB+/B' long- and short-term foreign and local currency sovereign credit ratings on Azerbaijan. The outlook is stable, APA reports citing the S&P Global Ratings Agency.
The stable outlook indicates view that the sovereign's fiscal and external position will not materially deteriorate beyond current expectations.
The ratings could be lowered if Azerbaijan's public finances, external position, or growth expectations materially weakened compared with forecasts. This could happen, for example, as a result of hydrocarbon revenues declining further and beyond assumptions, without fiscal spending being pared back in response.
Conversely, it is considered an upgrade if external surpluses were higher than base-line projections, resulting in a faster accumulation of the government's fiscal assets. This could happen, for example, if hydrocarbon revenues markedly increased in contrast to our assumptions and we expected the higher level to be sustained.