2024-07-12 07:40:09
Rating agency Moody’s today changed the outlook for the State Oil Company of the Azerbaijan Republic (SOCAR) from stable to positive, Day.Az reported on Tuesday, citing the agency.
“Today’s rating action is in line with the sovereign rating action and reflects SOCAR’s strong credit links with the state, as well as its significant exposure to Azerbaijan’s operating and macroeconomic environment. The rating action also reflects the company’s strong financial and credit metrics amid a resilient oil and gas market environment, which is of strategic importance to the government of Azerbaijan,” the agency said.
As noted, the positive outlook on the sovereign rating reflects the improving economic outlook, which has led to stronger credit metrics.
“The growing popularity of the Middle Corridor further strengthens Azerbaijan’s ambitions to become a Eurasian transport hub. Increased EU demand for Azerbaijani gas, as well as an expanding portfolio of renewable energy projects, accelerate diversification.
As a result, the operating and macroeconomic environment for SOCAR has improved, and the government’s financial capacity to support the company if needed, which is a positive factor for the company’s creditworthiness,” Moody’s added.