Fitch affirms Azerbaijan’s SOCAR at ‘BB+’

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Fitch Ratings has affirmed State Oil Company of the Azerbaijan Republic’s (SOCAR) Long-Term Issuer Default Rating (IDR) and senior unsecured rating at ‘BB+’, APA reports citing Agency.

The Outlook on the Long-term IDR is Negative. The Recovery Rating is ‘RR4’.

SOCAR is fully owned by the state and its rating is equalised with that of Azerbaijan (BB+/Negative) 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.

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