The international ratings agency Standard & Poor's affirmed the 'BBB-' long-term and 'A-3' short-term corporate credit ratings of Azerenerji, it has revised its outlook for the Azerbaijan-based vertically integrated electricity utility Azerenerji to negative from stable, the agency said.
The rating of Azerenerji reflects the assessment of an 'almost certain' likelihood that Azerbaijan would provide timely and sufficient extraordinary support to the company in the event of financial distress.
The assessment of an "almost certain" likelihood of state support is based on the view of Azerenerji's: “The first is factor is the "Critical" role for the government, since it is the state's largest electric utility and the government arm for implementing strategies in the electricity sector. Furthermore, the state's economic development and social mandates ensure reliable and affordable electricity provision, in our view. The second factor is the "Integral" link with the government, given its 100% ownership and our expectation that this will not change in the next three years".
S&P said it might revise the outlook to stable if the outlook for the sovereign rating will be revised to stable, 'Interfax-Azerbaijan'.
