Fitch assessed SOCAR's ratings along with the 10 largest global oil and gas companies

The international rating agency Fitch Ratings has confirmed the credit ratings of 11 oil and gas producing companies, including the State Oil Company of Azerbaijan (SOCAR), following an update of corporate rating criteria and sector navigators.

As reported by Fitch, the overall list of companies whose ratings were confirmed also includes QatarEnergy, Saudi Aramco, BP, OMV, Repsol, EDO, OQ, KazMunayGas, Romgaz and Uzbekneftegaz.

As part of the review, Fitch assessed SOCAR's standalone credit profile (SCP) using the Corporate Rating Tool (CRT). Based on the analysis, SOCAR's SCP was determined at "bb-" level.

SOCAR's business and financial profile received the following assessments: management – "bb", industry characteristics – "bb+", market and competitive position – "bbb-", diversification and asset quality – "bb+", operating characteristics – "bb", profitability – "bbb", financial structure – "b-", financial flexibility – "b+".

Quantitative financial indicators were calculated taking into account individual CRT parameters: 10% weight was assigned to actual data for 2024, 10% each to the 2025 forecast, 30% each to the 2026 and 2027 forecasts, and 20% to the 2028 forecast.

Fitch assessed SOCAR's corporate governance as "good" and the operating environment at "bb-" level. Both assessments did not lead to rating adjustments. When determining the long-term issuer default rating (IDR), government-related entity (GRE) rating criteria were applied using an equalized approach.