The upgrade follows the state's continuing guarantee for 100 percent of the state-owned UGE's debt and no plans to place non-guaranteed Eurobonds in the near future.

Lenders reported a fall in total net profit of 1.4 percent year-on-year of 505.6 million manats ($297.4 million) in the period from January to September 2021.

The regulator’s decision was based on some key factors, including high inflation expectations, an unchanged inflation target of 10 percent.

The country's revenues from gas exports rose by 56 percent year-on-year to $2.95 billion.