12:26 - 25.10.2023

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October 25, Fineko/abc.az. International rating agency Fitch Ratings has confirmed the rating of SOCAR at the level of BB+.

ABC.AZ reports that according to agency, the rating forecast is confirmed as "positive".

"The outlook remains positive. The asset recovery rating is RR4. We’ve revised our assessment of SOCAR's independent credit profile from b+ to bb- in light of the company's stronger financial profile," the rating agency said.

SOCAR is fully owned by the state, and its rating is currently equal to the rating of Azerbaijan (BB+/Positive) in accordance with Fitch's rating criteria for state-related companies.

"SOCAR is fully owned by the state, and its rating is equal to the rating of Azerbaijan (BB+/Positive) in accordance with the criteria of the rating of companies associated with the state. This is supported by state support provided to the company in the form of financial guarantees, monetary contributions and equity injections, as well as SOCAR's social functions and its importance as a state tool for development of oil and gas projects," the agency notes.

The agency notes that in 2022 SOCAR slightly increased oil and gas production - up to 284,000 barrels of oil equivalent (in 2021 – 282,000 bpd). Fitch assumes that SOCAR production will grow by an average of 0.5% a year in 2023-2025 due to increase in natural gas production gas.

"We expect SOCAR to maintain strong financial profile during the forecast period - until 2026 - in accordance with Fitch's forecast for oil and gas prices. This reinforces our upward revision of SOCAR's SCP," the agency emphasizes.