Fitch affirms Southern Gas Corridor CJSC's raiting
Fitch Ratings has affirmed Southern Gas Corridor CJSC's (SGC) senior unsecured Eurobonds' Long-Term foreign currency rating at 'BB+'.
The affirmation reflects Fitch's unchanged view on SGC's $2 billion Eurobonds maturing in 2026 fully guaranteed by the Republic of Azerbaijan (BB+/Negative).
In March 2017 SGC placed a tap issue of $1 billion (with 5.8% income rate), which are to be consolidated and form a single series with the initial $1 billion 6.875% Guaranteed Notes due 2026 issued on March 24, 2016.
Notably, the entity is tightly controlled by Azerbaijan, i.e. it ultimately owns 100% in SGC via 51% stake held by the Ministry of Economy and 49% stake held by the State Oil Company of Azerbaijan Republic.