On January 29, 2016 Standard & Poor’s credit rating service reduced Azerbaijan’s long-term credit ratings in national and foreign currencies from “BBB-“, which the last investment level, to a “trashy” BB+ level against the background of slump of oil prices.
S&P reported that this is the first reduction during Azerbaijan’s rating period. The forecast of change of the rating is “stable.”
The short-term ratings of the country in national and foreign currencies are reduced from A-3 to B.
“Oil prices continued going down in the past several months and we expect that the Azerbaijani government will fix the budget deficit till the end of 2018. We believe that foreign risks are getting stronger, while international resources of the Central Bank went down by two third from the peak level in mid-2014,” commented S&P analysts.
“We hope that Standard & Poor’s, which has immediately reduced Azerbaijan’s credit rating, due to reduction of oil and oil products, will be as efficient when prices go up and restore the country’s investment rating,” reported Azerbaijan Finance Ministry.