S&P: Petrol AD unchanged

Standard & Poor's said its ratings on Petrol AD (CCC+/negative) are unchanged following an announcement that the company has agreed to sell a number of its petrol stations to LUKoil Bulgaria.

Permission from the competition authority is still pending, the agency said, adding that in addition to a resulting material cash inflow, with assets sold at market value, the transaction should be positive in that it should end the claim LUKoil has filed against Petrol of, in total, Bulgarian lev 89.5 million in relation to a disputed retail fuel supply agreement.

Uncertainty remains, however, as to how Petrol will use the proceeds it receives from the sale and how Petrol's market position and relationship with LUKoil will develop after the agreement, S&P said.

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