12:22 - 25.12.2025

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December 25, Fineko/abc.az. Given the reduction of geopolitical risks and the preservation of budget reserves, Azerbaijan's credit indicators may improve in the medium-term prospect, ABC.AZ informs, referring to S&P Global Ratings.

Azerbaijan has exceptionally strong budgetary and external reserves. According to the agency, these opportunities are supported by large assets managed by the State Oil Fund of Azerbaijan (SOFAZ). The consistently positive overall net position on government assets and low government debt increase the resilience of the economy to shocks, mitigating the impact of fluctuations in hydrocarbon prices and maintaining macroeconomic stability.

S&P notes that in terms of reducing geopolitical risks and maintaining budget reserves, Azerbaijan's credit performance may improve in the medium-term prospect: "Although an official peace agreement has not yet been concluded, recent commitments and the first steps towards its implementation indicate that the most constructive stage of bilateral relations in recent decades is taking shape. This process is expected to improve the investment climate and increase the potential for economic growth."