S&P lowers Petrol AD

Standard & Poor's said it lowered its long-term corporate credit rating on Petrol AD to CCC from CCC+.

The outlook is negative.

The agency said it also lowered the senior unsecured debt rating on Petrol's €100 million bond to CCC from CCC+.

The rating action follows the company's large share repurchases, which could potentially result in a covenant breach, together with a large speculative derivative loss in the second quarter, S&P said.

Furthermore, the agency said it is increasingly concerned about Petrol's ability to regain cash flow strength following the sale of 75 retail stations to LUKoil Bulgaria.

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