What for absolutely non-transparent company in azerbaijan positively evaluated by international credit agencies?

Azerenerji company has gotten a credit rating (long-term credit rating BBB- and short-term credit rating A-3) from Standard & Poor's agency, which is the highest among the vertically integrated energy companies in the CIS space, Rafael Abbasov, chief of Azerenerji Strategic Development Department, said yesterday.

He said the rating shows an important role the company plays in the society and economy of the country as well as its legal, strategic and operation ties with the government.

He said the rating will contribute to growth of the company's image at the international level and its transparency.

Abbasov said this is the second credit rating, the company has got the first rating from Fitch agency in 2012.

He added that in the future Azerenerji "plans to diversify the markets" and break into international stock markets. The company has been also studying various directions for development of its operations, including privatization of electric networks abroad.

What for did Azerenerji has been given the credit rating?

Despite being the open-type joint stock company, Azerenerji is among the most non transparent state companies in the country. Azerenerji was set up as open-type JSC on September 17, 1996. However, its shares have not been issued yet and it has no shareholders, except for the government.

It does not publish its annual reports. During the whole period of its operation the company has posted only one financial report for fiscal year 2011, which consists of four small tables with no comments and explanations. The audited financial report of State Oil Company of Azerbaijan (SOCAR), which also has international credit ratings, consists of 74 pages.

Azerenerji has built almost all power stations at the expense of the state, or at the expense of the credits borrowed under the state guarantees. Although during the past 6 years billions of dollars have been spent to build generating and transportation capacities in the electric energy field, losses in the Azerenerji's networks is two times higher, than European norms and over 300 grams of conditional fuel is used to generate 1 kwh of power (in Europe it is below 200 grams).

In January 2013 Azerenerji did not present to the public the data of power generation by thermal and hydraulic power stations and just stated that total volume reached 2.1 billion kwh. Turan did not receive a response to the inquiry submitted to the company on February 11, 2013. Turan was interested why power consumption in January 2013 dropped by only 100 million kwh against January 2012, though weather was 5 degrees above average norm? Last January weather was extremely cold and temperature was below freezing even during the day from January 19 till the end of the month. Is it logical?

It seems like the international credit rating was given by Standard & Poor's to Azerenerji for "good relationships with the government," or with state capital to be precise, as Abbasov himself admitted.-0-