Fitch Ratings has affirmed Southern Gas Corridor CJSC's (SGC) senior unsecured Eurobond's long-term foreign-currency rating at 'BB+'.
Report informs citing the company that the affirmation reflects Fitch's unchanged view on SGC's USD2 billion Eurobonds maturing in 2026 fully guaranteed by the Republic of Azerbaijan (BB+/Positive).
The rating reflects the unconditional, unsubordinated and irrevocable guarantee of full and timely repayment provided to SGC's noteholders by the state. As a result, Fitch views the notes' rating as equalised with Azerbaijan's Long-Term Foreign-Currency IDR.
SGC is a special purpose company, established by presidential decree in 2014, owned by Azerbaijan with 51% endowed to Ministry of Economy and 49% to State Oil Company of Azerbaijan Republic (SOCAR, BB+/Positive). SGC was created for consolidating, managing and financing the state's interests in the development of Shah Deniz gas-condensate field, the expansion of the South Caucasus Pipeline, implementation of the Trans-Anatolian Natural Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP) projects.