Azerbaijani energy operator to receive state support for its investment needs
Baku, Azerbaijan, March 2
By Azad Hasanli - Trend:
Azerbaijan-based utilities company JSC Azerenerji expects to receive another 3.7 billion manats over 2016-2019, covering almost all of its investment needs, according to the report of the international agency 'Fitch Ratings'.
Azerbaijan has continued to provide equity injections, totaling 930 million manats over 2009-2015, to partially fund its investment program (35 percent of total capex over this period), according to the report.
Fitch assumes that the share of state-guaranteed debt will remain fairly stable over 2016-2018.
"We do not expect any significant changes to the legal links with the state in the foreseeable future as there are no plans at present to privatize Azerenerji," the report read.
An improvement in the budgetary position, a sustained rise in hydrocarbon prices, improvements in governance and the business environment, and progress towards diversifying the economy away from hydrocarbons are the main factors that could trigger positive rating action, according to the agency.
Fitch Ratings has revised Azerbaijan-based utilities company JSC Azerenerji's long-term issuer default rating (IDR) to 'BB+' and short-term IDR to 'B'. The outlook is negative.
Azerenerji's ratings are aligned with the Republic of Azerbaijan, reflecting the company's strong legal, strategic and operational ties with the state, as well as a track record of direct tangible state support.