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Nazrin Abdul

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Fitch Ratings has upgraded the long-term issuer default rating (IDR) and senior unsecured rating of the State Oil Company of the Republic of Azerbaijan (SOCAR) from "BB+" to "BBB-," Azernews reports.

The upgrade follows an increase in Azerbaijan's sovereign rating, and the outlook on SOCAR's long-term IDR remains "stable." As SOCAR is fully state-owned, its rating now aligns with Azerbaijan’s sovereign rating of "BBB-/stable," in accordance with Fitch’s criteria for government-related companies (GRE). This alignment is supported by substantial state support, including financial guarantees, cash contributions, and capital investments, as well as SOCAR’s pivotal role in advancing social functions and oil and gas projects for the country.

Fitch also assessed SOCAR's independent creditworthiness at "bb-," noting the company's moderate oil and gas production, robust financial profile, and constraints in corporate governance.

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