Fitch revises Socar view to negative

Fitch Ratings said it revised the otlook for the State Oil Company of the Azerbaijan Republic (Socar)to negative from stable. Its long-term issuer default rating and senior unsecured rating have been affirmed at BB+.

“The rating action reflects a recent similar action on the sovereign rating of Azerbaijan (BB+/negative) as Socar is fully owned by the state and their ratings are equalized under Fitch's government-related entities (GRE) rating criteria. This is underpinned by state support provided to the company in the form of financial guarantees, cash contributions and equity injections, as well as Socar's social functions and its importance as a state vehicle for the development of oil and gas projects,” Fitch said in a press release.

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