BAKU, Azerbaijan, December 5. Fitch Ratings has assigned Southern Gas Corridor Closed Joint-Stock Company (SGC) a Long-Term Issuer Default Rating (IDR) of 'BBB-' with a Stable Outlook, Trend reports via Fitch.
Based on Fitch's Government-Related Entities (GRE) Rating Criteria, SGC's rating is equalised with that of Azerbaijan (BBB-/Stable), its ultimate parent, reflecting that all SGC's debt is secured by government guarantees, and we expect this to remain the case over the rating horizon.
The company's Standalone Credit Profile (SCP) of 'bbb-' benefits from strong cash flow generation, with good visibility of the long-term contracted gas transportation business, large scale and a very strong financial profile. The SCP is constrained by the price volatility in the upstream segment, natural depletion of Shah Deniz natural gas-condensate field, and counterparty risk and operating environment limitations in Azerbaijan, Georgia and Turkiye.
“At end-August 2025, all of SGC's debt was guaranteed by the state, and we expect this to remain the case,” said Fitch.
Fitch notes that SGC benefits from large scale (USD2.6 billion Fitch-calculated EBITDA in 2024), geographical diversification and vertical integration, including upstream operations (a 16.02% share in Shah Deniz natural gas-condensate field), midstream gas transportation through the territories of Azerbaijan, Georgia, and Turkiye to Southern Europe (51% ownership of Trans-Anatolian Natural Gas Pipeline (TANAP) 21.02% in South Caucasus Pipeline and 20% of Trans Adriatic Pipeline (TAP), and downstream gas sales.