S&P: Petrol Ofisi on developing watch

Standard & Poor's said it placed its B+ long-term corporate credit rating on Petrol Ofisi AS (POAS) on CreditWatch with developing implications, following the announcement it will bid to acquire 51% of Tupras, which is to be privatized.

The price of the 51% stake will likely exceed $2 billion and the agency said it understands that POAS' owner may provide an equity injection to part-finance this potential acquisition.

S&P noted if POAS' share of the acquisition is largely equity-funded, the ratings could be raised to BB- as POAS' business profile could be strengthened by vertical integration of its retail and wholesale operations with the Tupras refinery operations.

Without significant equity support from POAS' owner, however, it is likely that the ratings would be lowered to B as the transaction would be large for POAS, the agency added.

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