This view also takes into account that these Notes represent a fairly small share of the company`s total debt, at approximately 6% as of 30 June 2015. However, Moody`s positively notes that this transaction will allow SOCAR to reduce its scheduled debt repayments in 2017, which currently total $946 million, thereby improving its liquidity profile: “We note that the company recorded a $0.9 billion foreign-exchange loss in H1 2015 primarily as a result of the revaluation of its foreign-currency debt following the devaluation of the manat to 1.05 USD/AZN in February 2015, from 0.78 USD/AZN earlier. Although the company expects to be in compliance with its financial covenant as of year-end 2015, we note that low oil prices, if sustained, can put further pressure on Azerbaijan manat in 2016. This would negatively affect the company`s tangible net worth, creating the potential risk of the company`s tangible net worth falling below the $4 billion threshold during 2016”.
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