Three Factors Reducing Oil Revenues in Azerbaijan

The internationally reputable rating agency Fitch Ratings upgraded Azerbaijan's long-term foreign currency issuer default rating (IDR) from "BB+" to "BBB-" — an investment-grade rating (!) with a stable outlook, but highlighted several obstacles hindering the country's economic progress.

The Azerbaijani government, through its budget formation and statistical accounting structures, reported that it concluded the first half of the economic year on a "positive note."

International rating agency Moody's has affirmed the issuer ratings and senior unsecured ratings of the government of Azerbaijan in foreign currency at Ba1 and has revised the outlook from stable to positive. The same ratings have been assigned to the Southern Gas Corridor CJSC (SGC or SGC).

The challenges  faced by Azerbaijan as the host before COP29 show that preparations for this event, especially the organization of logistical issues, the harmonization of the legislative and regulatory framework with international requirements, and especially the application of the easy visa, should be accelerated.