The affirmation reflects Fitch's unchanged view on SGC's USD2 billion Eurobonds maturing in 2026 fully guaranteed by the Republic of Azerbaijan (BB+/Stable).
“The rating reflects the unconditional, unsubordinated and irrevocable guarantee of full and timely repayment provided to SGC's noteholders by the state. As a result, Fitch views the notes' rating as equalised with Azerbaijan's Long-Term Foreign-Currency IDR. SGC's notes are explicitly guaranteed by Azerbaijan, and noteholders can enforce their claims directly against the state without being required to institute legal actions or proceedings against SGC first,” reads a message from Fitch.
The rating agency notes that the guarantee is governed by English law and ranks pari passu with all other unsecured external sovereign debt.
“Historically, reserves for the guarantee coverage were appropriated in the annual state budgets for 2016-2020, and we expect this practice to continue,” said Fitch.
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