Fitch: Petkim not yet affected

Fitch Ratings said the ratings of Petkim Petrokimya Holding AS may change as a result of the company's privatisation, depending on the credit profile of the successful bidder and new majority owner and on structural ownership details. Meanwhile, the outlook on the company's BB local- and foreign-currency issuer default ratings and AA-(tur) national long-term rating remains stable.

The Turkish Privatization Administration announced on Feb. 8 a privatization tender of 51% of Petkim's shares through a block sale. The agency said the administration owns 54% of Pektim (44% of which is subject to this sale) and the Republic of Turkey, State Pension Fund holds 7%. Currently, 39% of Petkim shares are traded on the Istanbul Stock Exchange. The pre-qualification application deadline is May 14, and final bids are due on June 15.

Petkim is Turkey's largest petrochemicals player and Fitch said it remains an equity-capitalized company with very low debt. Compared with its larger international peers, however, the company has limited scale and integration scope and suffers earnings volatility, leading to below-average operating margins, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.