Fitch: Petkim view to negative

Fitch Ratings said it affirmed Petkim Petrokimya Holdings AS's long-term foreign- and local-currency issuer default ratings at B+ and national long-term rating at A-(tur).

The agency also revised its outlook to negative from stable.

The ratings incorporate a one-notch uplift due to support from State Oil Co. of the Azerbaijan Republic (Socar), Petkim's main shareholder.

The outlook revision reflects concerns about Petkim's weak credit metrics at the end of 2012's third quarter, Fitch said.

The agency also said the revision considers additional concerns about the company's ability to sustain the recovery in operating cash flow and margins observed in the first half of 2012 amid forecasts of lackluster demand and increased volatility for the petrochemicals sector in 2013.

Petkim's financial underperformance in the first nine months of 2012 highlights its vulnerability to cyclical downturns and its weak cost position, Fitch said.

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