Fitch Upgrades Azerbaijan’s SOCAR to ’BBB-

Fitch Upgrades Azerbaijan’s SOCAR to ’BBB-
# 25 May 2010 07:06 (UTC +04:00)
The rating upgrade follows Fitch’s 20 May 2010 upgrade of Azerbaijan’s Long-term foreign currency IDR to ’BBB-’ from ’BB+’. (For further information, please see the comment, entitled "Fitch Upgrades Azerbaijan to Investment Grade; IDRs to ’BBB-’", which is available on the agency’s website at www.fitchratings.com.)

SOCAR is a 100% government-owned entity representing the state’s interests in the oil and gas industry, which is vital to the country’s economy as hydrocarbons account for around 60% of Azerbaijan’s GDP, and the largest taxpayer in the country. As such, Fitch considers the legal, operational and strategic ties between the state and the company to be strong. The agency has therefore aligned SOCAR’s ratings with those of Azerbaijan, based on Fitch’s ’Parent and Subsidiary Rating Linkage’ methodology.
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THE OPERATION IS BEING PERFORMED