MOSCOW (MRC) -- Moody's Investors Service (Moody's) has today placed on review for downgrade the Ba1 corporate family rating (CFR), Ba1-PD probability of default rating (PDR) and Ba1 senior unsecured notes rating of State Oil Company of the Azerbaijan Republic (SOCAR), following the placement of Azerbaijan's rating on review.
"Our decision to place SOCAR's ratings on review for downgrade reflects the fact that it is wholly state-owned, as well as the company's exposure to Azerbaijan's weakening operating and credit environment. Furthermore, there is increasing risk that the government's capacity and willingness to provide extraordinary support to SOCAR may become more limited if stresses in the banking system worsen," says Denis Perevezentsev, Vice President -- Senior Credit Officer at Moody's.
On 19 May, Moody's placed Azerbaijan's Ba1 long-term issuer rating and senior unsecured rating on review for downgrade, prompted by the unexpected announcement of a restructuring plan for the country's largest bank, state-owned International Bank of Azerbaijan (IBA, Caa3/on review for downgrade), which could imply that Azerbaijan's credit profile is weaker than Moody's had previously expected.
MRC