Moody's affirmed the foreign currency-backed senior unsecured rating of Southern Gas Corridor CJSC (SGC) at Ba1 and changed the outlook to positive from stable, Report informs.
“Azerbaijan benefits from higher EU demand for its gas, reflecting the bloc's efforts to diversify away from Russian gas. Over the past 1-2 years, Azerbaijan has signed multiple agreements with the European Commission as well as individual European economies for the supply of gas. As a result, gas production and export volumes have picked up significantly since 2022, with further room for growth amid exploration and expansion projects in the pipeline. Within the hydrocarbon sector, the ramp up in gas will offer diversification from a traditional reliance on oil, particularly as oil production continues to decline given depleting oil reserves,” Moody’s said in a statement.