Global ratings agency Moody’s has upgraded Azerbaijan’s sovereign credit rating from Ba1 to Baa3, officially moving the country into investment-grade territory. The outlook remains positive, signaling further potential improvements.
According to Moody’s report, the upgrade reflects Azerbaijan’s reduced reliance on oil and gas revenues, a result of structural reforms implemented in recent years. These reforms include improvements in monetary policy, financial sector regulation, public finance management, and transparency in government processes—steps that collectively strengthen institutional resilience.
Moody’s also highlights Azerbaijan’s strategic ambition to position itself as a regional transport and green energy hub. Key projects such as the expansion of the Trans-Caspian transport corridor and the reconstruction of the Karabakh and East Zangazur economic regions are boosting growth in transportation, logistics, construction, and tourism. These developments are attracting significant investment and accelerating the country’s economic diversification agenda.
