Moody's Ratings has affirmed the long-term issuer credit ratings of Azerbaijan's state-owned Southern Gas Corridor CJSC (SGC) at 'Baa3' in both local and foreign currency. The outlook remains 'positive'.
The state directly owns 49% of SGC's shares, with the remaining 51% held by SOCAR, a fully state-owned oil and gas company. The government plans to sell a minority stake to XRG, the international investment arm of Abu Dhabi National Oil Company, by end-2026.
Moody's expects the state to retain control and influence over SGC's strategy and policies post-sale, classifying SGC as a government-related issuer. The ratings reflect a BCA of 'Baa3', high correlation of default with the state, and high likelihood of extraordinary government support.
The positive outlook aligns with Azerbaijan's sovereign rating, supported by the company's strategic importance and strong government backing.
