Fitch Ratings revises outlook on Azerbaijan Mortgage Fund

Fitch Ratings has revised the Outlook on the Azerbaijan Mortgage Fund under the Central Bank of Azerbaijan Republic (AMF) to Positive from Stable and affirmed its Long-term foreign currency and local currency ratings at 'BBB-', the Agency said.

The rating action reflects the revision of Azerbaijan's Outlook ("Fitch Revised Azerbaijan's Outlook to Positive; Affirms at 'BBB-'" dated 17 May 2011) as well as Fitch's assessment of continuing robustness of the support framework in place for AMF from its sponsor (Central Bank of Azerbaijan Republic).

AMF's ratings are equalised with the Azerbaijan sovereign rating, reflecting the entity's public sector status, its tight control by the sovereign through the central bank and its important role in the government's housing finance policy.

"Provision of affordable housing is a high priority for the state," the Agency said.

AMF's mortgage portfolio increased to 225.3 million manat as of late June from 193 million manat as of late 2010.


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