Fitch ups Petrol Ofisi

Fitch Ratings said it upgraded Petrol Ofisi AS's local and foreign currency issuer default ratings to BB- from B+.

The national long-term rating is upgraded to A(tur) from A-(tur), the agency added.

Following the upgrades, the outlooks are now stable.

The senior unsecured rating on the $175 million notes of the company's wholly owned and guaranteed subsidiary PO Oil Financing Ltd. is also upgraded to BB- from B+.

Fitch noted that the upgrades reflect improvements in the business environment and the company's strong 2005 operational and financial performance, marked by further debt reduction and strong operating profitability in the price-liberalization era.

Key factors supporting the ratings are Petrol Ofisi's leading domestic market position in the diesel market despite consolidation and elevated competition in the sector, its sizeable network and storage capacity that reaches currently 29% of total capacity in Turkey, plus its economies of-scale and competitive advantages on direct fuel imports.

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