Feb 28, 2016 05:42 AM EST
Fitch Ratings Inc. has degraded Azerbaijan's ratings to junk on Friday followed by a collapse in crude oil price. The third biggest oil exporter of the former Soviet Union is about to its shrinking economy for the first time in seven years due to global oil price falling. The rating has been lowered to BB+ from BBB-.
Fitch Ratings Inc. is one of the three nationally recognized statistical rating organizations (NRSRO) designated by the U.S. Securities and Exchange Commission in 1975. The other two are Moody's Investors Service and Standard & Poor's (S&P). Both of them have cut the country to junk during the previous month.
Low oil prices have caused a significant deterioration in the fiscal position. Failure to adjust expenditure or revenue earning in a lower oil price market may trigger additional negative rating action, reports Daily Newsquoting an unnamed Fitch analyst.
The rating agency has degraded Azerbaijan's long-term foreign and local currency Issuer Default Ratings (IDR) to BB+ from BBB- with a negative outlook forecast. The issue rating on Azerbaijan's senior unsecured foreign currency bond has also been degraded to BB+ from BBB-. The Country Ceiling has been revised to 'BB+' from 'BBB-' and the Short-term foreign-currency IDR has been degraded to B from F3, reportsReuters citing Flitch press release as the source.
Due to fall in oil production and prices, country's gross domestic product (GDP) has shrunk 3.3% during January compared to a year earlier, reveals the State Statistics Committee. Fitch has also forecast for a GDP decline of 3.3% during 2016. Meanwhile, S&P expects the economy to contract 1% this year with gross domestic product per capita plummeting by almost half to $4,100 from $8,000 two years ago, according to a report published in Bloomberg.
Earlier on Tuesday, Azerbaijan's parliament has revised the state budget for 2016, cutting its oil-price projection to $25 a barrel from the previous estimate of $50. Planned budget spending has been increased 13.7% to AZN 18.5 billion ($11.8 billion). Meanwhile, revenue has been raised 15.5% to AZN 16.8 billion.
The national currency has lost more than 50% against the dollar after two devaluations in last year. The central bank has announced opting for a floating exchange rate in December after burning through more than half of its reserves in 2015. But all these efforts have failed to resist outlook degradation from the analysts.
Azerbaijan's parliament has revised its national budget for 2016 cutting its oil-price projection to $25 a barrel from the previous estimate of $50. Country's central bank has gone for a floating exchange rate in December to cope up with the exchange rate battle. But the adopted measures have failed to adjust degradation in economic outlook by the analysts like Fitch Ratings, S&P and Moody's.
However, there are some simple steps that anyone can take which will help to improve their performance when it comes to trading foreign exchange markets. Here are ten small things that can make a big difference in your FX trading success.
o prevent significant losses, risk management expertise is essential. His adage, "Rule No. 1: Never lose money," has become a stock market classic. Never forget Rule No. 1; this is Rule No. 2. This practice is followed by even the most successful investor, Warren Buffett, who advises others to follow suit.
One of the significant advancements is shifting the payment operations for remote workers. If the compliances are not met, it may lead to severe legal complications. The owner and organization may be held labially separately. The remote working lifestyle continuously grows and is a testament to becoming an endless working mode. Today we discuss components for payroll for remote workers
BRG International Founder Matias Alem had recognized this fact for a few years. So he remodeled his real estate brokerage into something completely new to solve the problem for his jet-setting international client base.
Ryan Early, hailed as 'Farmer Ryan' among sustainable agriculture experts, is a busy man. He has a laundry list of companies to his name, including Blue-Green Ventures, the company behind the revolutionary product, Blue MagicTM, a non-toxic and eco-sustainable pest preventative product using his patented BiomeMax TM Pheromonal Replication Technology.
Investor, financier, and expert in both cryptocurrencies and blockchain technology, Joy Mbanugo is the go-to in the sector. She has vast experience and knowledge across tax services, auditing, business operations, financial analysis, capital markets, and other specializations.
When Nick Collins was just 14 years old, he started his first business, which included around-the-clock phone calls and numerous questions from his parents. In fact, he began building his stout portfolio in the seventh grade by doing web design, incorporating creative content with brand strategies and plugging in a then-fledgling tech Flash.
Barry Gabster is the founder of InitiateU and is a leading proponent of the marketing mailer revolution, having already taken his company to 10x growth in 2021, alone. In fact, the exponential growth has seen the company rise from $800K-$8.5M just on word-of-mouth referrals.
If you think that the micro accounts are useful only for beginners who may not be able to cope with the fast dynamics of changing quotes on trading platforms, then this is not so. Professionalism grows out of these cent accounts.