S&P Global Ratings upgraded SOCAR’s long-term issuer credit rating to BB.
S&P based the upgrade on SOCAR’s strengthened financial stability, its key role in the national economy in terms of operational scale and significance, and the company’s progress in enhancing corporate governance standards, along with other important factors.
Despite volatility in global energy markets in recent years, SOCAR has delivered four consecutive years of positive free cash flow, maintained a stable debt profile, and ensured high liquidity. Effective risk management, operational resilience, and sound financial decision-making enabled these results. With its “stable” outlook, S&P signals a positive medium- and long-term view of SOCAR’s ability to sustain its financial indicators.
SOCAR has also reduced debt obligations, preserved strong liquidity, and strengthened investor confidence in international financial markets, demonstrating the effectiveness of its sustainable financial management strategy. As a result of these efforts, SOCAR achieved—for the first time in its history—two international “investment grade” ratings: BBB- from Fitch Ratings and Baa3 from Moody’s, confirming the company’s reliability and financial stability in global capital markets.
Aiming to improve access to alternative financial resources, expand cooperation with additional investment funds, and promote the use of “green” and “sustainable” financial instruments, SOCAR became the first company in the Caspian region to receive an initial BBB ESG rating from MSCI based on Environmental, Social and Governance (ESG) criteria. This rating places SOCAR ahead of most national oil companies. SOCAR also continues active discussions with other rating agencies to obtain additional ESG ratings.
S&P Global Ratings, one of the world’s most reputable international rating agencies, significantly influences investor decisions, financial institutions, and borrowing strategies through its assessments. The current BB rating stands as SOCAR’s highest assessment over the past eight years.
You can read S&P’s full statement via the link below:
https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3476558