Azerbaijan, Baku, May 24 / Trend /
Fitch Ratings has increased the rating of the State Oil Company of the Azerbaijan Republic (SOCAR). SOCAR now has a "BBB-" Long-Term Issuer Default Rating (IDR) in foreign exchange and an "F3" short-term foreign currency IDR. The forecast is "stable," Fitch has reported.
The rating increased after the agency increased Azerbaijan's Long-Term IDR in foreign currency from "BB +" to "BBB-" May 20.
SOCAR is fully state owned and represents the state's interests in the oil and gas industry, which is significant for the economy, as about 60 percent of the GDP falls to hydrocarbons. The company is the largest taxpayer in the country.
For this reason, Fitch considers legal, operational and strategic ties between the state and the company strong. As a result, the agency appropriates ratings to SOCAR on par with Azerbaijan's sovereign rating based on its in-house methodology.