Azernews.Az

Standard & Poor's Ratings Agency has placed the "B" long-term credit rating of Azerbaijani diversified Baghlan Group FZCO Company on CreditWatch with negative outlook.

The placement of the rating on CreditWatch reflects the agency's view that the liquidity risks may put pressure on the ratings of Baghlan, if the company will be unable to refinance a significant amount of the short-term debts or improve the performance of generated free cash flow, for example with the release of the circulating capital or completing the planned sales in the construction segment.

The agency plans to withdraw Baghlan's rating from CreditWatch till mid-December 2013.

"We will confirm the company's rating, if it is able to significantly improve liquidity indicators by refinancing or increasing cash flow generation, for example by completing the sale of residential real estate or releasing circulating capital, in case of payment of the project for the construction of the road," the message said. "If the company will not be able to significantly improve its liquidity indicators, we can lower its rating for one or more stages. In this case, the downgrade will depend on the analysis of liquidity. "

Baghlan Group FZCO, a diversified conglomerate with interests in oil & gas exploration and production, construction and transportation in Azerbaijan, is one of the first private companies in Azerbaijan to enter oil and gas sector.