Moody's upgrades Petrom rating to B2

Financial rating agency Moody’s has upgraded the rating for SNP Petrom’s 125 million euro bond issue from B3 to B2. Petrom’s 2001 issue was the first issue of a Romanian company for the international capital markets without any security from the State. The rating outlook is stable due to several factors, as Moody’s officials say. First of all, the decision of the international rating agency takes into account the sound cash-flow situation and the credit-related actions taken by SNP Petrom, as well as the strong position the largest Romanian company enjoys on the fuel market. On the other hand, the rating is still below the one of Romania, the latest grade of which is B1. Agency analysts say the current debts of Petrom are covered by the value of its assets. The largest company on the Romanian market anticipates to post approximately $2.01bn turnover and $50.9 million net profit in 2003. Petrom is now trading for 1,250 ROL/share on the Stock Exchange, with the market capitalisation amounting to $1.4bn. ZF