State may reduce support for SOCAR in this case


October 29, Fineko/abc.az. International rating agency S&P Global Ratings (S&P) confirmed SOCAR's rating at "BB-", and lowered the rating Outlook from "Stable" to "Negative".

ABC.AZ reports with reference to the agency that the downgrade of SOCAR's forecast to "Negative" is due to the reduction of the Issuer's "BB+/B" forecast for the long-term and short-term default rating ("BB+/B") in local and foreign currency of Azerbaijan to "Stable".

Thus, if Azerbaijan's creditworthiness decreases, the State will have to reduce its support for SOCAR. The ongoing Nagorno-Karabakh conflict may also change the priority of state funding from investments in state-owned companies for military needs.