Fitch cuts Iranian Oil outlook to negative

Fitch Ratings said it revised National Iranian Oil Co.'s outlook to negative from stable following the recent change in Iran's sovereign rating outlook to negative. The BB- senior unsecured rating was affirmed.

The rating is aligned with Islamic Republic of Iran's BB- long-term rating and reflects the financial, strategic and operational linkage with the state, the agency said. The state exerts significant strategic control through the presence of the oil minister on the company's board and parliamentary approval of both Iranian Oil's annual budget and the setting of strategic targets for the industry's five-year development program.

The state also exerts significant financial influence through its financing of the company's business, annual tariff setting, annual approval and audit of the accounts and ability to control dividend payments and affect the domestic and international business environment, the agency said.

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