BAKU, Azerbaijan, January 31. Fitch Ratings has confirmed the long-term foreign-currency rating of Southern Gas Corridor CJSC's (SGC) senior unsecured Eurobonds at 'BBB-', Trend reports.
The rating reflects the guarantee of full and timely repayment to SGC's noteholders provided by the state. As a result, Fitch has aligned the notes' rating with Azerbaijan's Long-Term Foreign-Currency IDR.
This affirmation reflects Fitch's unchanged view on the USD2 billion Eurobonds issued by SGC, which mature in 2026 and are fully guaranteed by the Republic of Azerbaijan (BBB-/Stable).
Fitch evaluates SGC's notes under its Government-Related Entities Rating Criteria, and aligns the notes' ratings with Azerbaijan's Long- and Short-Term Issuer Default Ratings based on the state guarantee for the senior unsecured notes. This alignment takes precedence over the assessment of responsibility-to-support and incentive-to-support factors, as the guarantee is the dominant factor for rating equalization.
The guarantee provided for the notes is an unconditional, unsubordinated, and irrevocable obligation of Azerbaijan, and the notes rank equally with all other current and future senior unsecured debt of the country.
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