Upgrade of Azerbaijan's sovereign credit rating based on development of oil & gas sector

12:01 - 7.07.2025

July 7, Fineko/abc.az. The upgrade of Azerbaijan's credit rating to Baa3 - investment grade - by the international rating agency Moody's is primarily due to the development of the non-oil and gas sector, the rapid growth of revenues in this area, and a significant reduction in the state budget's dependence on oil and gas revenues.

ABC.AZ reports, Azerbaijan's Economy Minister Mikayil Jabbarov wrote about this on X.

The minister noted that the achievements under the leadership of President Ilham Aliyev in the diversification and development of the Azerbaijani economy have received international recognition.

Jabbarov wrote in a post on X: "The achievements of Azerbaijan’s economic and financial bodies under the leadership of President Ilham Aliyev continue to gain recognition at the international level. The recent upgrade of Azerbaijan’s sovereign credit rating to investment grade (Baa3) by Moody’s is a testament to the effectiveness of reforms aimed at fostering non-oil sector growth, increasing revenue diversification, and significantly reducing the state budget’s dependence on hydrocarbon revenues.

Robust stability has been established through systematic reforms in the banking and financial sectors and in monetary policy; the disciplined application of budget rules; and comprehensive tax reforms underpinned by transparency and accountability. At the same time, strategic foreign-exchange reserves have grown significantly, bolstered by transparent public procurement practices and the digitalization of related processes—together, these measures have driven a marked improvement in Azerbaijan’s sovereign credit metrics.

Beyond macro-fiscal consolidation, improvements in the investment climate and business environment are attracting increasing foreign interest. The strengthened regulatory framework, investor-friendly policies, and overall economic resilience are laying the foundation for large-scale investment projects that support long-term sustainable growth and further economic diversification.