Ministry of Finance: Azerbaijan to continue cooperation with S&P without concluding paid contract

Azerbaijan plans to continue its cooperation with S&P Global Ratings beyond its contractual commitments, Report informs referring to the Ministry of Finance.

The country intends to maintain cooperation with the agency under the unsolicited rating model, without entering into a paid contract.

The ministry noted that Azerbaijan has been cooperating with international rating agencies since 2000 to facilitate access to global financial markets, regulate borrowing procedures, and strengthen the trust of international financial institutions.

During this period, the country worked with three leading rating agencies-Fitch, S&P Global Ratings, and Moody's-both on a contractual basis and through independent assessments.

According to the Ministry of Finance, assessment by two of the three leading rating agencies is a widely accepted institutional practice internationally.

Over the past five years, Azerbaijan's sovereign credit rating has been assessed by two agencies-Fitch and S&P-on a paid basis under a formal agreement, and by one agency-Moody's-on a non-contractual basis, meaning no payments by Azerbaijan.

"Sustainable growth and fundamental positive trends in Azerbaijan's economy have led to an improvement in the country's sovereign ratings. Thus, in 2024, Fitch Ratings and in 2025, Moody's Ratings upgraded Azerbaijan's rating to investment grade, setting it at BBB- and Baa3, respectively. The rating outlook is assessed as stable and positive."

"Both agencies noted Azerbaijan's strong fiscal performance, its international standing, significant growth in foreign exchange reserves, low public debt, and positive budget indicators, which make the economy resilient to external shocks," the ministry noted.

The ministry said that, in line with international practice, Azerbaijan will continue to cooperate with only two agencies on a fee-based basis-this time with Fitch and Moody's-while cooperation with S&P will continue without a contract or payment.

"Considering that the assessments of both agencies are sufficient for accessing international capital markets and regulating borrowing procedures, cooperation with S&P Global Ratings is planned to continue outside the framework of contractual commitments," the Ministry of Finance emphasized.

The ministry also stated that in the coming years, it will continue to work with leading international rating agencies on assessing the sovereign credit rating, ensuring that the fundamental and sustainable growth of the country's economic indicators is reflected in credit ratings.