Fitch rates Rompetrol 'B-'

Fitch Ratings, the international rating agency, has assigned the Rompetrol group, the second largest oil company in Romania, a senior unsecured ‘B-‘ (B minus) rating with a stable outlook. At the same time, the agency has assigned Rompetrol’s proposed 150m-euro senior unsecured notes a ‘B-‘ (B minus) rating with stable outlook. The rating, the agency notes, reflects Rompetrol’s high financial leverage, very limited track record of profitability as well as the challenges of the Romanian market, including low fuel prices and margins, which are indirectly controlled by the state through fuel market leader, state-owned SNP Petrom (rated ‘BB-‘ (BB minus), rating watch positive). The rating also takes into account favourable location of the Petromidia refinery, and the strategic advantage it provides both in terms of crude oil supplies as well as easy access to export markets, Fitch experts say. ZF