Azerbaijan, Baku, Feb. 17 / Trend E. Ismayilov /
A qualitative development way passed by "Azerenergy" company (production and distribution of electricity in Azerbaijan) allows it to enter the global capital market, managing director of one of the world's largest commercial bank Goldman Sachs Khalil Emedzhen told media in Baku on Thursday.
He added that the power company has passed a certain long way in using the international financial reporting standards, good corporate governance practice in the implementation of internal procedures in compliance with all international standards. This is reflected in the international credit rating assigned to it by Standard & Poor's. On Thursday, Standard & Poor's Ratings Services said that it assigned its 'BBB-' long-term and 'A-3' short-term corporate credit ratings to Azerbaijan-based electric utility Azerenergy. The outlook is stable.
"The assessment allows it to enter the capital markets, expands access to all other transactions with any other member of the global financial system," he said.
According to Standard & Poor's, we have equalized the ratings on Azerenergy, a vertically integrated electric utility, with those on its 100% owner, the Republic of Azerbaijan (BBB-/Stable/A-3) as we believe there is an "almost certain" likelihood of extraordinary government support in the event of financial distress according to our criteria for government-related entities.
"Azerenergy" deals with the production and distribution of electricity in Azerbaijan. In particular, the company sells electricity to "Bakielektrikshebeke", which then distributes and sells it in Baku.
The balance sheet of Azerenergy includes more than 200 substations with a capacity of 500, 330, 220 and 110 kV, as well as six hydroelectric and 13 thermal power plants.
As the energy sector is one of the priority areas for the Azerbaijani government, the drawn investments, as well as for capitalization, are focused primarily on constructing new power stations and upgrading the generation capacity.
