Standard & Poor’s gives SOCAR BB rating

Standard & Poor’s gives SOCAR BB rating
# 20 October 2011 13:03 (UTC +04:00)
Moody’s and Fitch have already given SOCAR ratings. Standard & Poor’s gave SOCAR a BB for its key role in oil extraction, tax-paying and employment in Azerbaijan.

SOCAR is a 100% state company involved in exploration and extraction of oil at the Azeri-Chirag-Gunsehli (ACG) and Shah-Deniz Oil Fields (with shares of 11.6461% and 10%, respectively).

SOCAR is ready for purchase of assets, as shown by purchase of the Turkey’s Petkim petrochemical enterprise for $2 billion. It also plans to improve and modernize oil refineries and petrochemical facilities.
The positive rating may be improved. Forecasts may be reconsidered according to the stability rating.

Additional opportunities to improve the rating come from better creditability of SOCAR, such as financing major investments using state support rather than issuing bonds.

Standard & Poor’s says that rating reduction is very unlikely and may only occur from weakening of contacts with the government.
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THE OPERATION IS BEING PERFORMED