S&P may up Petrol Ofisi

Standard & Poor's said it placed a B+ long-term corporate credit rating on Petrol Ofisi AS on CreditWatch with positive implications.

The watch placement follows news that one of the company's current owners, OMV Aktiengesellschaft, is in discussing an acquisition of the other owner, Dogan Holding's stake.

Should such a transaction materialize, S&P said it is likely to raise the ratings by one notch or more because Petrol Ofisi would become an almost fully owned subsidiary of OMV, whose direct or extraordinary financial support would likely result in upward rating movement.

The agency said it also thinks that Petrol Ofisi would benefit operationally from integration with OMV.

The current ratings reflect the company's significant exposure to currency and oil-price volatility and challenging domestic economic conditions, S&P added.

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