BAKU, Azerbaijan, November 15. The State Oil Company of Azerbaijan (SOCAR) is holding active talks with major rating companies to obtain new ESG (Environment, Social and Governance) ratings, Trend reports via the company.
According to SOCAR, expanding access to alternative financial resources, strengthening cooperation with global investment funds, and increasing the use of green and sustainable financial instruments remain key priorities.
SOCAR noted that it became the first company in the Caspian region to receive an initial BBB ESG rating from MSCI based on ESG (Environment, Social, and Governance) criteria, demonstrating a stronger position compared to many national oil companies.
“At present, SOCAR is also negotiating with other rating agencies to receive additional ESG ratings,” the company stated.
S&P Global Ratings is widely regarded as one of the most influential international credit rating agencies, providing benchmark assessments of credit quality and risk across global capital markets. Its ratings play a decisive role in shaping the investment strategies and borrowing plans of investors and financial institutions. SOCAR’s current BB rating represents the company’s strongest assessment in the past eight years.
SOCAR has maintained positive free cash flow for four consecutive years despite recent volatility in global energy markets, while also preserving a stable debt profile and strong liquidity. Effective risk management, operational resilience, and prudent financial decision-making have supported these results. The “stable” outlook issued by S&P Global Ratings reflects a positive and credible medium- to long-term expectation of SOCAR’s ability to sustain its current financial performance.
“Additionally, the reduction of debt obligations, the preservation of liquidity, and growing confidence in international financial markets demonstrate the effectiveness of SOCAR’s long-term financial management strategy. As a result of this comprehensive approach, the company has, for the first time in its history, received two international investment-grade credit ratings, BBB from Fitch Ratings and Baa3 from Moody’s. These assessments underscore SOCAR’s financial stability and credibility across global capital markets,” the statement added.
S&P Global Ratings has also upgraded SOCAR’s long-term issuer rating to BB.
SOCAR’s enhanced financial resilience, its central role in the national economy, the scale and strategic significance of its operations, and continued improvements in corporate governance standards were identified as key factors behind the rating upgrade.