Moody’s rates Southern Gas Corridor notes Ba1

Moody's Investors Service said it assigned a provisional Ba1 rating to Southern Gas Corridor CJSC’s upcoming $1 billion 6 7/8% semiannual guaranteed notes due March 24, 2026 and guaranteed by the Republic of Azerbaijan (Ba1, review for downgrade).

The provisional rating is placed under review for downgrade, in line with the review for downgrade of the government's rating.

The review on Southern Gas Corridor’s rating will conclude at the same time as the review on the government's ratings.

Moody’s said the provisional Ba1 debt rating matches the long-term issuer rating of the Republic of Azerbaijan, reflecting the very strong support provided by the Republic of Azerbaijan through (a) the existence of a formal state guarantee that satisfactorily meets the agency’s core principles of guarantees for credit substitution; as well as (b) the view that it is sensible to expect Azerbaijan's government to be equally committed to honoring debt that is formally in its name or in Southern Gas Corridor’s name given that it is merely a public policy vehicle.

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