Azerbaijan, Baku, March 27 / Trend /
Fitch Ratings downgraded Turkish Petrochemical Holding Petkim's Long-term foreign and local currency Issuer Default Ratings (IDRs) to 'B+' from 'BB-', the rating agency reported.
Fitch Ratings also downgraded Petkim's National Long-term rating to 'A-(tur)' from 'A+(tur)'. The outlook on all ratings is Stable.
According to the agency, the rating action reflects a downgrade of Petkim's standalone IDR to 'B' from 'BB-' and a simultaneous one notch uplift to 'B+' for support from the State Oil Company of Azerbaijan (SOCAR; 'BBB-'/Stable), which is Petkim's main shareholder.
Fitch believes that Petkim's severe underperformance in the fourth quarter of 2011 highlights the company's vulnerability in the face of cyclical downturns and signals a further weakening in its competitive position, at a time of reduced demand visibility and increasing price volatility.
Edited by: A.Badalova