Fitch increases SOCAR's rating

Rating agency Fitch Ratings increased the ratings of SOCAR (State Oil Company of Azerbaijan), Long-term Issuer Default Rating (IDR) in foreign exchange from level "BB +" to "BBB-" and short-term foreign currency IDR - with "B" to "F3". The forecast on the long-term issuer default rating - "Stable", Fitch said.

The rating increases after the agency increases a long-term IDR of Azerbaijan in foreign currency from "BB +" to "BBB-" May 20 this year.

SOCAR is fully state ownership and represents the state's interests in oil and gas industry, which is significant for the economy, because about 60% of GDP falls to the share of hydrocarbons in Azerbaijan. The company is the largest taxpayer in the country.

For this reason, Fitch considers legal, operational and strategic ties between the state and the company strong. As a result, the agency appropriates ratings to SOCAR on a par with the sovereign rating of Azerbaijan, based on its methodology, "Relationship between ratings of 'Parent and Subsidiary Rating Linkage'.


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