Fitch Ratings has revised Azerbaijan-based utilities company JSC Azerenerji's outlook to Stable, affirmed its Long-Term Issuer Default Rating (IDR) at 'BB+', affirmed its Short-Term IDR at 'B' and simultaneously withdrawn the ratings for commercial reasons.
‘Fitch rated Azerenerji under its "Government-Related Entities Rating Criteria". Azerenerji's ratings are aligned with that of its sole shareholder Azerbaijan (BB+/Stable), which reflects our assessment of the strong links with the state due to the guarantees provided by the state for the majority of Azerenerji's outstanding debt, and the equity injections which the company continues to receive. The revision of the Outlook reflects the revision of the Outlook on the Republic of Azerbaijan sovereign rating on 2 February 2018. We view the support track record and the state's incentive to support all operations of Azerenerji as very strong, as the state provided equity injections over the past few years to partially fund Azereneji's investment programme. Following the decree signed at end-2015, the state will continue providing equity injections to Azerenerji to assist the company in repaying its foreign-currency loans over 2016-2025’, the agency said.