Fitch downgrades Petkim

Fitch Ratings said it downgraded Petkim Petrokimya Holdings AS' long-term foreign- and local-currency issuer default ratings to B+ from BB- and its national long-term rating to A-(tur) from A+(tur). The outlook is stable.

The agency said the action reflects a downgrade of Petkim's standalone issuer default rating to B from BB- and a simultaneous one-notch uplift to B+ for support from State Oil Co. of the Azerbaijan Republic (BBB-/stable), Petkim's main shareholder.

In Fitch's view, Petkim's severe underperformance in the fourth quarter of 2011 highlights the company's vulnerability in the face of cyclical downturns and signals a further weakening in its competitive position at a time of reduced demand visibility and increasing price volatility.

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