Baku - APA-Economics. Fitch Ratings has affirmed Azerenerji JSC's Long-term Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook and Short-term foreign currency IDR at 'F3', the Agency reported.
“Azerenerji's ratings continue to be aligned with those of its sole shareholder, the Republic of Azerbaijan, reflecting the strong legal, operational and strategic ties between the company and the state. The recent 34% Azerbaijan manat devaluation weakens Azerenerji's standalone credit profile due to the currency mismatch between the company's debt and revenues and limited use of hedging to reduce exchange-rate risk exposure. At end-2014, almost 80% of the company's outstanding debt was denominated in foreign currencies, mainly in euros, dollars and Japanese yen versus almost all local-currency denominated revenue. Azerenerji's ratings are supported by strong links with the state through guarantees of substantial portions of the company's debt and therefore are unlikely to change as a result of its worsening financial profile unless there is unremedied liquidity squeeze”, the Agency said.
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