S&P rates Petrol notes BBB-

Standard & Poor’s said it assigned a preliminary BBB- long–term and A-3 short-term corporate credit ratings to Petrol dd, Ljubljana.

The agency also said it assigned a preliminary BBB- rating to the proposed unsecured notes to be issued by Petrol dd.

This reflects a view that the financial and trade obligations ranking ahead of the rated bond are less than 20% of adjusted total assets, S&P said.

The outlook is stable.

The ratings reflect the group’s fair business risk profile and significant financial risk profile, the agency said.

The ratings also consider Petrol’s strong domestic fuel retail market position, the company’s strong brand and the high barriers to entry, S&P said.

The company has some diversification through its expanding operations outside Slovenia and in parallel markets, the agency said.

Those strengths are partly offset by the moderate size of the company and its market, S&P said, and Petrol’s modest geographic diversification and relatively weak profitability.

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