Fitch raises operating environment rating for Azerbaijan's banks to 'bb'/stable

Fitch Ratings upgraded its operating environment assessment for Azerbaijani banks to "bb"/stable from "bb-"/stable. The agency said the change reflects tighter regulatory oversight and progress in implementing a risk‑based supervisory framework, which should improve the sector’s resilience to cyclical pressures. Fitch also noted the sovereign’s solid credit profile and support for macroeconomic stability, narrowing the gap between the operating environment score and the sovereign rating of BBB‑/Stable.

The Central Bank of Azerbaijan reported that the banking sector’s structural liquidity surplus reached AZN 6 billion at the end of the first half of 2026, more than double the level in December 2025. The average daily AZIR rate in the unsecured money market was 6.43 % in May‑June 2026, easing to 6.39 % in July, indicating strong lending capacity across the banking system.