Moody’s lowers Azerbaijan view to negative

Moody’s Investors Service said it confirmed Azerbaijan’s long-term issuer ratings and senior unsecured debt ratings at Ba1 and assigned a negative outlook.

The agency also said it confirmed Southern Gas Corridor CJSC’s state-guaranteed senior unsecured debt rating at Ba1 and assigned a negative outlook.

The negative outlook reflects the steep decline in the oil price, which delivered a significant shock to the oil-reliant Azeri economy, Moody’s said.

This resulted in a severe economic-, currency- and banking-sector crisis and caused Azerbaijan’s fiscal position and government debt metrics to deteriorate markedly over the past year, the agency said.

The country’s wealth fund and large stock of foreign-currency assets does help cushion the economy and government balance sheet, Moody’s said, and gives Azerbaijan time to adjust to lower oil prices.

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