On 11 July 2025, Moody’s Investors Service upgraded the long-term issuer rating of the SOCAR to Baa3 (stable), marking its transition to investment-grade.
Key factors contributing to the rating upgrade include SOCAR’s robust financial performance, strengthened transparency and accountability, and the introduction of improved corporate governance mechanisms.
Despite challenges such as oil and gas market volatility and operational uncertainties, SOCAR has demonstrated four consecutive years of positive free cash flow, reliable credit metrics, and a sound liquidity position. The rating also reflects SOCAR’s consistent expansion of international partnerships. Moody’s stable outlook underscores confidence in the company’s ability to maintain its credit quality and effective financial management.
SOCAR also noted that last year Fitch Rating Agency rated SOCAR to BBB-, another investment-grade rating. (https://www.fitchratings.com/research/corporate-finance/fitch-upgrades-socar-to-bbb-outlook-stable-08-08-2024)
Additionally, SOCAR received a BBB ESG (Environmental, Social and Governance) rating from MSCI last year in recognition of the company’s commitment to its decarbonisation goals announced at COP28. (https://socar.az/az/post/msci-beynelxalq-reytinq-agentliyi-socar-a-esg-uzre-bbb-ilkin-reytinqini-verib)
Moody’s has been assigning credit ratings to SOCAR since 2010, and the current Baa3 rating represents the highest level the company has achieved to date.
- Investment-grade credit ratings provide several advantages to borrowers, including:
Credit ratings provide various benefits to the borrower, including:
Validating SOCAR’s investment-grade rating status, its financial stability and ability to meet obligations in a timely manner
Allowing the Company to attract not only risk-seeking investors, but also risk-averse ones
Improving access to liquidity by attracting more potential investors during bond issuances in both local and international capital markets
Allowing the Company to issue securities at lower interest rates
Issuance at lower interest rates set precedent for future deals, allowing SOCAR to issue to secure similar or better terms going forward
About Moody’s
- Moody’s was founded in 1909 by John Moody and is headquartered in New York, USA. The agency specialises in providing credit ratings, research, and risk analysis across various sectors, including corporate finance, sovereign debt, and structured finance. Moody’s ratings influence investment decisions and borrowing costs and are of great importance to market participants.
- To access Moody’s full rating action, please visit:
Source: https://socar.az/en/post/socar-tarixinde-ilk-defe-olaraq-investisiya-oluna-bilen-derecede-iki-reytinq-elde-edir
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