S&P affirms Azerbaijan at BBB-/A-3, outlook negative

The agency cited Azerbaijan's solid but deteriorating general government net asset and strengthening external creditor positions, which provide buffers in the event of financial distress.

"On the one hand, we forecast continued strength in Azerbaijan's external balances," S&P said. "On the other hand, we see a modest deterioration in its fiscal balance sheet, little economic diversification, and an unreformed institutional framework."