Fitch affirms rating of Azerbaijani mortgage & credit guarantee fund

Fitch Ratings has affirmed Mortgage and Credit Guarantee Fund of the Republic of Azerbaijan’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at ‘BB+’, the outlooks are stable.

As Report informs, the affirmation reflects Fitch’s unchanged view on the fund’s strong link with the Republic of Azerbaijan (BB+/Stable) and the fund’s strategic importance in the provision of affordable housing and development of the business environment by facilitating financing to small and medium enterprises (SMEs).

Under its Government-Related Entities (GRE) Criteria, Fitch applies a top-down approach and views the government’s ability and willingness to provide support to the fund as very high. Based on the assessment of the strength of linkage and incentive to support, Fitch equalizes the fund’s IDRs with those of Azerbaijan, irrespective of the fund’s Standalone Credit Profile (SCP).