In 2010 the Azerenerji account payable to the only supplier of fuel SOCAR worth $2 billion has been written off with the government’s consent
International rating agency Standard &Poor’s has reduced a long-term and short-term credit ratings of the Azerbaijan electric energy company Azerenerji from BBB-/A-3 to BB+/B, reported the agency.
“The company’s rating is based on the fact that there is “almost absolute” probability that Azerenerji will receive a timely and sufficient extra help from the Azerbaijani government in case of the difficult financial situation. We evaluate stand-alone credit profile (SACP) of Azerenerji,” reported the agency.
S&P reported that the government provided support to Azerenerji, including infusion into capital, guarantees of debt obligations, direct borrowings by the state, transfer of assets, allotting credits at low interest rates and other types of financial support. “Although Azerenerji is obliged to pay taxes, earlier the government has repeatedly approved their deferment. In 2010 the company’s account payable to the only supplier of fuel SOCAR worth $2 billion has been written off with the government’s consent. In 2010 Azerenerji also wrote off debt receivables of other state companies to the same amount,” the agency reported.
