S&P downgrades rating of Azerbaijan to “junk” level of BB+

Moscow. January 29. Credit rating Agency Standard & Poor’s on Friday lowered long-term credit rating of Azerbaijan in local and foreign currencies from “BBB-“, the last stage of investment grade, to “junk” level of BB+ on the background of the collapse in oil prices.

As stated in the S&P, this was the first decline for the time of the rating of Azerbaijan. The forecast of change of ratings – “stable”.

Short-term ratings of the country in national and foreign currencies reduced from A-3 to B.

“Oil prices continued to decline in the last few months, and we now expect that the Azerbaijani government will record a budget deficit until the end of 2018. In our opinion, the external risks intensify, the international reserves of the Central Bank fell by two thirds from its peak level in mid-2014,” – commented analysts at S&P.

Earlier this week it became known that Azerbaijan expects to receive from world Bank loans in the amount of $1 billion from the International monetary Fund – $3 billion

In this case Azerbaijan will become the first country to get loans from these organizations from the emergency aid packages to countries affected by the collapse in oil prices.