17:16 - 15.07.2025

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July 15, Fineko/abc.az. The upgrade of the long-term issuer rating of the State Oil Company of Azerbaijan (SOCAR) by international rating agency Moody's up to investment grade Baa3 will give access to the company to a wider range of investors.

ABC.AZ reports with reference to SOCAR that upgrade of SOCAR's long-term issuer rating up to Baa3 with stable outlook will allow the company to attract not only risk-seeking but also risk-averse investors.

According to Moody's, the main factors that influenced the rating upgrade are SOCAR's sound financial performance, increased transparency and accountability in the company, as well as the formation of improved corporate governance mechanisms.

"Despite difficulties such as price fluctuations in the oil and gas markets and the volatility of operations, SOCAR has demonstrated positive free cash flow for four consecutive years, reliable credit indicators and a healthy liquidity position. The rating also takes into account the constant expansion of SOCAR's international cooperation. Moody's stable outlook reflects confidence in SOCAR's ability to maintain credit quality and effective financial management," the company notes.

Upgrading of SOCAR's rating to investment grade provides several advantages. These include improving access to liquidity by attracting more potential investors in both local and international capital markets when issuing bonds, and placing securities at relatively lower interest rates, which in turn may become a guideline for future issues.

Moody's has been cooperating with SOCAR on assigning credit ratings since 2010, and current rating Baa3 is the highest level achieved so far.