AMF`s ratings are equalised with Azerbaijan`s sovereign ratings (BB+/Negative), reflecting the entity`s public sector status, its tight control by the sovereign and its important role in the government`s housing finance policy. Fitch uses its public-sector entities rating criteria to rate AMF, which it views as a credit-linked entity.
AMF is a state institution that was established under the decree of the President of the Republic of Azerbaijan in September 2005. The entity acts as the government`s agent in implementing the state`s social housing programmes and supports provision of dwelling space to Azerbaijani citizens through long-term mortgage loans. AMF also contributes to the stability and development of Azerbaijan`s financial sector by refinancing mortgage loans of commercial banks and issuing mortgage-backed securities.
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