Azerbaijan was cut to junk by Fitch Ratings, as the former Soviet Union’s third-biggest oil exporter is expected to see its economy shrink for the first time in seven years amid a collapse in crude.

The Fitch rating was lowered to BB+ from BBB-, Gazeta.ru news site of Russia reported citing Bloomberg financial data and media company.

“Low oil prices have caused a significant deterioration in the fiscal position,” the Fitch analysts said. “A failure to adjust expenditure or revenue to the lower oil price environment” could trigger additional negative rating action, they added.

Fitch forecast gross domestic product in Azerbaijan will decline 3.3 percent in 2016.