The long-term credit rating of Azerenergy has been affirmed at BBB- with the same negative outlook. According to the international rating agency Standard & Poor`s, the local energy monopoly "has been placed under surveillance" in the negative list of Credit Watch.
The reason for such a decision was the devaluation of the manat on 21 December last year in connection with the transition to a floating exchange rate, as approximately 81% of the company’s external debt is subject to currency risks. The only thing that can save is state aid in the event of financial distress.
The government has no plans to raise tariffs on electricity because of the reluctance to create social problems, and it can also take on the repayment of the debt of the monopolist, which it periodically does.
The annual capital expenditure of Azerenergy will be at the level of 100-120 million manat. All this indicates a high probability of downgrade of its rating, which will be reviewed in 3 months. If the authorities against the background of the loss of foreign exchange reserves do not support the OJSC, its rating will fall. - 17D-
Economics
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On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
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Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
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Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
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Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
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