Standard & Poor’s Gives ‘BB’ Rating to SOCAR
OREANDA-NEWS. October 27, 2011. SOCAR already owns positive ratings of rating agencies Moody's and Fitch. Standard & Poor's Ratings Services has recently assigned its 'BB' positive rating to SOCAR. The agency gave SOCAR rating for its key role in oil extraction, tax-paying and employment in Azerbaijan. It is mentioned that SOCAR is involved in exploration and extraction of oil at the Azeri-Chirag-Gunsehli (ACG) and Shah-Deniz Oil Fields (with shares of 11.6461% and 10%, respectively) and represents the country in these projects.
SOCAR received a ‘fair’ business risk profile and a ‘significant’ financial risk profile. It is reported that SOCAR needs the state support for increasing oil production and purchasing new assets and at present, Company enjoys considerable ongoing support from the government. As noted, the positive outlook on SOCAR reflects the positive outlook on Azerbaijan. Country’s rating is very important factor for SOCAR rating. According to the methodology, Company’s rating will improve when the country’s rating is improved. Other way of upgrading SOCAR’s rating is improving its credit capacity.
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