Politics

Fitch upgrades SOCAR rating outlook

Fitch Ratings international ratings agency has revised the Outlook on State Oil Company of the Azerbaijan Republic’s (SOCAR) Long-Term Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDR and senior unsecured rating at ‘BB+’. The Recovery Rating is ‘RR4’, Report informs referring to the agency’s message.

The rating actions follow the revision of the Outlook on the sovereign rating of Azerbaijan (BB+/Stable).

“SOCAR is fully owned by the state and its rating is equalized with that of Azerbaijan under Fitch’s Government-Related Entities (GRE) Rating Criteria. This is underpinned by state support provided to the company in the form of financial guarantees, cash contributions and equity injections, as well as SOCAR’s social functions and its importance as a state vehicle for the development of oil and gas projects,” reads the message.

“We assess SOCAR’s Standalone Credit Profile (SCP) at ‘b+’, with high leverage being the main constraint,” Fitch added.

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