The affirmation reflects Fitch's unchanged view on SGC's USD2 billion Eurobonds maturing in 2026 fully guaranteed by the Republic of Azerbaijan (BB+/Stable).

The rating reflects the unconditional, unsubordinated and irrevocable guarantee of full and timely repayment provided to SGC's noteholders by the state. As a result, Fitch views the notes' rating as equalised with Azerbaijan's Foreign-Currency IDR.

SGC is a special purpose company, established by presidential decree in 2014 for consolidating, managing and financing the state's interests in the development of Shah Deniz gas-condensate field, the expansion of the South Caucasus Pipeline, implementation of Trans-Anatolian Natural Gas Pipeline (TANAP) and Trans Adriatic Pipeline projects. Azerbaijan ultimately owns 100% of the entity via a 51% stake held by the Ministry of Economy and a 49% stake held by the State Oil Company of Azerbaijan Republic (SOCAR, BB+/Stable).