Fitch raises SOCAR rating, forecast ‘stable’
Fitch Ratings has increased the rating of Azerbaijan’s state oil
company SOCAR. SOCAR now has a "BBB-" Long-Term Issuer Default
Rating (IDR) in foreign exchange and an "F3" short-term foreign
currency IDR. The forecast is "stable," Fitch has reported.
The rating increased after the agency raised Azerbaijan's Long-Term IDR in foreign currency from "BB +" to "BBB-" on May 20.
SOCAR is fully state owned and represents the state's interests in the oil and gas industry, which is significant for the economy, as about 60 percent of the Gross Domestic Product (GDP) falls to hydrocarbons. The company is the largest taxpayer in the country.
For this reason, Fitch said, the agency considers legal, operational and strategic ties between the state and the company strong. As a result, the agency appropriates ratings to SOCAR on par with Azerbaijan's sovereign rating based on its in-house methodology.*
The rating increased after the agency raised Azerbaijan's Long-Term IDR in foreign currency from "BB +" to "BBB-" on May 20.
SOCAR is fully state owned and represents the state's interests in the oil and gas industry, which is significant for the economy, as about 60 percent of the Gross Domestic Product (GDP) falls to hydrocarbons. The company is the largest taxpayer in the country.
For this reason, Fitch said, the agency considers legal, operational and strategic ties between the state and the company strong. As a result, the agency appropriates ratings to SOCAR on par with Azerbaijan's sovereign rating based on its in-house methodology.*
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