Standard & Poor’s downgrades rating of 'Azerenerji' JSC

Baku. 29 April. REPORT.AZ/ Standard & Poors Rating agency downgraded the long-term corporate credit rating of "Azerenerji" JSC from "BB +" to "BB". Report informs referring to the agency, the short-term corporate credit rating was affirmed at "B". In addition, the agency evaluated the creditworthiness of the company on the level of "CCC +".

Standard & Poors believes that the relationship of "Azerenerji" with the state remained unchanged, but if the government will reduce the support, the company may get into difficulties.

The rating agency predicts a gradual decline in support from the state because of rising pressure on the budget.

"For the first time in the last 10 years we expect a weakening of the economy of Azerbaijan and the formation of the consolidated budget deficit. This will reduce the State Oil Fund's assets."

S & P believes that the government will not stop supporting "Azerenerji" in the next three years: "The state is the guarantor of 40% of the debt structure is thought that the government will not raise electricity tariffs due to possible social problems, however, believe that the government can help by paying foreign debts, tax debts and debts to the main fuel supplier - SOCAR."