Fitch lifts Petkim to stable

Fitch Ratings said it revised Petkim Petrokimya Holdings AS's outlook to stable from negative and affirmed its long-term foreign- and local-currency issuer default ratings at BB-.

The agency also said it upgraded its national long-term rating to A+(tur) from A(tur).

The stable outlook reflects the expectation that near-term market conditions will underpin strong capacity utilization rates, improved operational results and cash flow generation in 2011, Fitch said.

The ratings continue to be supported by its unleveraged balance sheet and strong liquidity, the agency said.

The ratings are constrained by Petkim's weak cost position relative to peers, Fitch said. While restructuring measures undertaken over the past few years have yielded some savings and efficiency gains, the company's EBITDA margins remain well below those of the petrochemical producers competing in its domestic and exports market, the agency said.

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