S&P Global Upgrades SOCAR’s Credit Rating to ‘BB’ Amid Improved Financial Transparency

S&P Global Ratings has raised the long-term issuer credit rating and issue rating of the State Oil Company of Azerbaijan (SOCAR), along with its senior unsecured debt, to ‘BB’ from ‘BB-’.

The rating agency highlighted that SOCAR has demonstrated significant improvements in financial policy transparency and disclosure, enhancing visibility into the company’s performance, The Caspian Post informs via local media.

“We have observed meaningful progress in SOCAR’s governance and financial communication, which has prompted us to revise the company’s stand-alone credit profile (SACP) to ‘bb-’ from ‘b’,” S&P noted.

The agency added that the clearer financial policies and enhanced disclosure-covering business segments, corporate structure, and strategic plans-were key factors behind the upgrade. SOCAR’s renewed focus on domestic upstream projects, which provide more predictable cash flows and lower investment risk, also contributed to the positive assessment.

Despite the improvements, S&P cautioned that SOCAR’s history of opportunistic investments and a complex corporate structure means the company will remain under close observation.