23 November 2012 15:16 [Source: ICIS news]
LONDON (ICIS)--Central European petrochemical producers such as Poland’s PKN Orlen may face competition from new waves of polyolefin products exported from the US, a Polish bank said on Friday.
Orlen’s petrochemical margins over the next two years could come under pressure as “new, export-oriented polyolefin capacities from the U.S. may begin to flood European markets,” Tomasz Kasowicz, an analyst at Warsaw-based bank Zachodni, said in a note to investors.
Noting also that Orlen’s earnings are set to suffer further from low refining margins, Kasowicz initiated Zachodni coverage of Orlen stock with a ‘Sell’ recommendation.
Earlier on Friday, Fitch Ratings said that it may upgrade Orlen’s current credit rating – BB+ with a 'Positive' outlook – in one or two years time if the group’s credit ratios remained at moderate levels.
Orlen has said it will only issue Eurobonds if it receives an upgrade to investment grade from the credit rating agencies.
The Polish group is the 63%-owner of Czech polyolefins manufacturer Unipetrol and manufactures its own polyolefins in Poland at its main site in Plock.
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