Fitch affirms Petrol

Fitch Ratings said it affirmed Petrol AD's long-term issuer default rating at B- and its €100 million notes due 2011 at senior unsecured B- and removed them from Rating Watch negative.

The outlook is negative for the long-term issuer default rating. The RR4 recovery rating on the notes is affirmed.

The action reflects the reduced risk of a liquidity crunch after Petrol fixed a breached covenant in its €100 million bond and told Fitch it has not been notified that the €100 million notes are immediately due.

The negative outlook reflects Petrol group's weak financial liquidity and higher-than-expected leverage, its challenging operating environment, the fuel wholesale business's underperformance and the adverse impact of its litigation with its main supplier Lukoil Bulgaria EOOD.

Petrol's consolidated adjusted net debt-to-EBITDAR ratio slipped to 5.5 times at fiscal year-end 2006 from 3.3 times the previous year.

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