OREANDA-NEWS. Fitch Ratings has today upgraded the Republic of Azerbaijan's foreign and local currency Issuer Default ratings ("IDRs") to 'BB+' from 'BB'. The Outlooks remain Stable. The Country Ceiling has been revised to 'BB+' from 'BB' while the Short-term foreign currency rating is affirmed at 'B'.

"Fitch's upgrade of Azerbaijan's sovereign ratings is driven by strong and sustainable economic growth, low government and external debt ratios and a growing current account surplus, underpinned by rapidly rising oil and gas production," says David Heslam, a Director in Fitch's Sovereign group in London.

Azerbaijan's ratings are supported by the strength of - and medium-term prospects for - the country's energy sector, GDP growth, low debt levels and relatively strong external finances.

Further rating upgrades will, however, depend on the adoption of a timely policy response to inflationary pressures and addressing shortcomings related to structural reforms and the diversification of the economy.