The rating agency said: "The RWN reflects the uncertainty regarding the form and the amount of state support that will be available to the company at the time of expected drop in earnings, partially due to changes in the consolidated perimeter.

"A State Programme for the Development of Railways over 2016-2020 (Programme) is being discussed by the government of Azerbaijan. While a large part of capex funding has been provided by the government, the new programme is yet to be approved and we expect authorities to adjust capital spending to lower oil prices. We may notch ADY's rating down from the sovereign rating if we think the support and links are weakening. Currently the company's rating is aligned with Azerbaijan's sovereign rating (BBB-/Stable).

"We expect to resolve the RWN within six months."