S&P lifts Azerenerji view to stable

S&P said it revised the outlook on Azerenerji JSC to stable from negative and affirmed its ratings at BB and B.

The agency said the company continues to benefit from an almost certain likelihood of support from Azerbaijan's government, demonstrated by debt repayments, guarantees and co-funding of capital expenditure.

S&P said internally generated cash, government loans or equity injections will cover Azerenerji's large capital expenditure needs to modernize its asset base following the 2018 blackout.

I The company's credit quality has stabilized, thanks to almost full cash collection, improved liquidity and ongoing state support, the agency said.

The stable outlook reflects the same outlook on the sovereign, indicating the likelihood of state support for Azerenerji is unlikely to change and that the company will not borrow from third parties without government guarantees, S&P said.

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