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Nazrin Abdul

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The international rating agency Fitch Ratings has assigned a long-term Issuer Default Rating (IDR) of “BBB-” with a Stable outlook to the Southern Gas Corridor Closed Joint-Stock Company (SGC CJSC), Azernews reports.

According to Fitch, the company’s rating is aligned with that of its sole shareholder, the Republic of Azerbaijan (BBB- / Stable). This reflects the fact that all of SGC’s debt obligations are backed by state guarantees, and Fitch expects this practice to continue throughout the forecast period.

The company’s stand-alone credit profile (SCP) is assessed at ‘bbb-’, supported by strong cash-flow generation, a highly predictable business model based on long-term gas transportation contracts, large-scale operations, and very solid financial metrics. Constraining factors include price volatility in the upstream segment, natural depletion at the Shah Deniz gas-condensate field, as well as counterparty risks and operational challenges in Azerbaijan, Georgia, and Türkiye.

“As of end-August 2025, all of SGC’s debt remained fully guaranteed by the state, and we expect this to continue,” Fitch stated.

The agency notes that SGC operates with extensive scale, geographic diversification, and vertical integration. Specifically, the company is involved in:

Upstream: 16.02% stake in the Shah Deniz gas-condensate field
Midstream: Gas transportation to Southern Europe via Azerbaijan, Georgia, and Türkiye, including:

51% in TANAP
21.02% in the South Caucasus Pipeline (SCP)
20% in the Trans Adriatic Pipeline (TAP)
Downstream: Sales of natural gas to end consumers.