Fitch: Petkim's outlook negative

Fitch Ratings said it revised Petkim Petrokimya Holdings AS' outlook to negative from stable and affirmed its long-term foreign- and local-currency issuer default rating at BB- and national long-term AA-(tur).

The outlook revision partially reflects expectations that Petkim's 2010 to 2012 gross profit margins may not achieve their 2005 to 2007 levels despite a number of proactive cash-saving restructuring measures, according tot eh agency.

The negative outlook also reflects concern that Petkim may increase leverage to fund its expansion program, the agency said.

Petkim's BB- rating is supported by the company's net cash position, the agency said. Other strengths include its competitive advantage, privatization and restructuring measures since the summer of 2008, the agency noted.

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