"Fitch Ratings" announced that it raised the default rating of the long-term foreign currency issuer of Azerbaijan from "BB+" level to "BBB-" level and assessed it with a stable outlook.

Axar.az reports that the agency has released information about this.

According to the rating agency, the rise reflects the country's strong external balance sheet, ongoing current account and fiscal surpluses, reduced foreign exchange sensitivity, low public debt and evolving monetary policy.

Annual inflation remained below the Central Bank's 4 percent target range in the first half of 2024 and is expected to be 3.5 percent this year, rising to 4.7 percent by 2026.

The country's economy is projected to recover to 3.2%, but slow to 2.7% next year and 2.3% in 2026.

"At the same time, the decline of the oil sector will decrease compared to previous years, which is due to new oil production and higher natural gas production, which may slow down the rate of decline," the agency stressed.