Fitch affirms Petrol Ofisi

Fitch Ratings said affirmed Petrol Ofisi AS' local- and foreign-currency issuer default ratings at BB-, the national long-term rating at A(tur) and the senior unsecured rating on the $175 million notes of subsidiary PO Oil Financing Ltd. at BB-.

The outlook is stable.

The ratings are affirmed despite the $414 million administrative fine imposed Aug. 31 on the company and its subsidiary Erk Petrol Yatirimlari AS by the regulator EMRA for allegedly supplying fuels to unlicensed dealers.

On Nov. 9, Petrol Ofisi filed lawsuits at Istanbul Administrative Court, requesting cancellation of the payment orders by the tax office. The Ministry of Finance recently accepted an 18-month payment plan.

In a worst-case scenario, the company's leverage may deteriorate to the 1.5x-1.9x range, still within the limits of current rating category, Fitch said. However, the agency added that any deterioration beyond this mark would put pressure on the ratings.

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