Baku, Azerbaijan, June 6
Fitch Ratings has affirmed Azerenerji JSC (Azerbaijani national energy operator) Long-term Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook and its Short-term foreign currency IDR at 'F3'.
Fitch continues to align Azerenerji's ratings with those of the Republic of Azerbaijan (BBB-/Stable), the sole shareholder, to reflect strong legal, operational and strategic ties between the company and the state, as per the agency's Parent and Subsidiary Rating Linkage methodology.
In particular, the rating alignment reflects state guarantees for the majority of Azerenerji's outstanding debt, the company's strategic importance to the Azerbaijani economy and strong operational links, including tariff and capex approval by the government, and track record of direct state support.
The company is 100 percent directly state-owned.