Moody’s Expects Azerbaijan State Oil Fund's Assets to Keep Growing

Moody’s Ratings expects the assets of the State Oil Fund of Azerbaijan (SOFAZ) to continue increasing as the government advances efforts to mobilize non-oil revenues and strengthen non-oil fiscal consolidation, reducing the country’s dependence on hydrocarbon windfalls.

The assessment was included in the international rating agency’s periodic review of Azerbaijan’s sovereign credit ratings, The Caspian Post reports, citing local media.

According to Moody’s, the relatively narrow state deficit will keep the government's debt burden well contained below 30% of GDP as targeted by the latest medium-term fiscal framework, remaining significantly lower than the median for similarly rated peers. This factor indicates the government’s strong financial position and the preservation of fiscal buffers formed through SOFAZ.