Fitch downgrades Petkim

Fitch Ratings said it is providing further comment on the March downgrade of Petkim Petrokimya Holdings AS. (Petkim).

The company's long-term foreign- and local- currency issuer default ratings were downgraded to B+ from BB- and its national long-term rating to A-(tur) from A+(tur).

The outlook is stable.

The actions reflected 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, Petkim's main shareholder, Fitch said.

Petkim's severe underperformance in the fourth quarter of 2011 highlights its vulnerability in the face of cyclical downturns and signals a further weakening in its competitive position, the agency said.

The downgrade also reflects a shift away from the underleveraged balance sheet and strong liquidity that had historically supported Petkim's ratings, Fitch said.

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