Fitch affirms 'B+' issuer default rating for Romania's Rompetrol

17 May 2013 13:48  [Source: ICIS news]

LONDON (ICIS)--Fitch Ratings has affirmed the Rompetrol Group's long-term issuer default rating (IDR) at "B+", with a "stable" outlook, noting that its owner should soon be more confident about making investments in the Romanian company, the ratings agency said on Friday.

The Rompetrol Group, which includes Rompetrol Petrochemicals, remains heavily reliant on the owner, Kazakhstan's KazMunayGas, which is set to repurchase 27% of the Rompetrol Rafinare refining subsidiary for $200m from the Romanian government, Fitch said.

In a report on its latest rating of the Rompetrol Group, Fitch stated: “The Romanian government will retain an 18% minority stake in Rompetrol Rafinare. KazMunayGas will finance the transaction through a shareholder loan to the Rompetrol Group. KazMunayGas views the transaction as important to solving a long-standing dispute with the government, a move that will also give KazMunayGas confidence to make further investments into the Rompetrol Group.”

Fitch added that it viewed the Rompetrol Group's stand-alone rating as commensurate with a "CCC" rating, given the company's weak financial profile.

KazMunayGas's long-term foreign currency IDR is rated by Fitch at "BBB", with a "stable" outlook.

By: Will Conroy
+44 20 8652 3214

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