S&P affirms Azerenergy’s rating at "BB/B" with negative outlook

Standard & Poor's Ratings Services said today that it has assigned its 'BBB-' long-term and short-term corporate credit ratings to Azerenergi OJSC.

The outlook is negative.
This was caused by close links of the OJSC with the state: “The state has so far provided necessary support to Azerenergy during lack of liquidity and fulfilment of foreign obligations. According to our forecasts, this practice will continue”
The agency says that the OJSC’s foreign debts were guaranteed by the state as at late 2016: “According to relevant order of the Cabinet of Ministers, the government will provide financial support to the company to repay the credits in 2016-20 25. Along with this, according to information, funds will be allocated from the 2017 state budget for increase of authorized capital and fulfilment of foreign obligations. We believe that the Finance Ministry controls fulfilment of foreign obligations by Azerenergy OJSC”.


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