Fitch changes Azerbaijan to stable

Fitch Ratings said it revised the outlook on Azerbaijan's long-term foreign- and local-currency issuer default ratings to stable from negative and affirmed the ratings at BB+.

Fitch said macro-stability improved in 2017 after two years of turbulence.

“In the context of gradually recovering oil prices and tight monetary and fiscal policies, the exchange rate has been stable since April 2017 at around 1.70 to the U.S. dollar. This has in turn helped ease pressure on inflation, which although at 12.9% on average in 2017, has reduced on a month-on-month basis since April 2017,” the agency said in a news release.

“Dollarisation of loans and deposits (40.6% and 72.1%, respectively, at end-November 2017) is slowly declining, also reflecting some improved confidence in the currency.

“Fitch expects the currency to remain broadly unchanged over the coming two years, based on stable oil price assumptions.”

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