Baku: SandP Global Ratings has raised the long-term issuer credit rating and issue rating of the State Oil Company of Azerbaijan (SOCAR) and its senior unsecured debt to ‘BB’ from ‘BB-‘. The upgrade reflects improvements in SOCAR’s financial policy transparency and disclosure levels, which have enhanced the visibility of the company’s performance.

According to Azerbaijan State News Agency, SandP Global Ratings noted the material improvement in SOCAR’s governance and financial policy, which prompted an uplift in the assessment of SOCAR’s stand-alone credit profile (SACP) to ‘bb-‘ from ‘b’. The agency highlighted recent progress in the company’s transparency, citing timeliness and scope of disclosure, and better granularity on business segments, corporate structure, and strategy.

SandP Global Ratings stated that SOCAR’s focus on domestic upstream projects, which are core to its cash flow, has contributed to this positive assessment. These projects present less uncertainty on investments compared to previous years. However, the agency emphasized the importance of closely monitoring SOCAR’s developments due to its history of opportunistic investments and a complex corporate structure.