BAKU, Azerbaijan, July 15. On July 11, international credit rating agency Moody’s upgraded the long-term issuer rating of the State Oil Company of Azerbaijan (SOCAR) to Baa3 (stable), marking the company’s first entry into investment-grade territory, Trend reports.
The upgrade reflects SOCAR’s strong financial performance, enhanced transparency and accountability, and improvements in corporate governance.
Despite ongoing challenges such as price fluctuations in global oil and gas markets and operational volatility, SOCAR has consistently demonstrated positive free cash flow, solid credit metrics, and a strong liquidity position for the past four years. The rating also takes into account SOCAR’s continued expansion of international partnerships. Moody’s stable outlook reflects confidence in the company’s ability to maintain credit quality and manage its finances effectively.
It’s worth noting that last year, Fitch Ratings also assigned SOCAR an investment-grade rating of BBB- with a stable outlook.
In addition, SOCAR was awarded a BBB ESG (Environmental, Social and Governance) rating by MSCI last year, in recognition of its commitment to the decarbonization targets announced during COP28.
Moody’s has been rating SOCAR since 2010, and the current Baa3 rating is the highest the company has received to date.
