Fitch ups Petrom eurobonds to BB

Fitch Ratings said it upgraded SNP Petrom SA's senior unsecured rating and €125 million eurobond issue to BB from BB- and removed them from Rating Watch Positive. The outlook is positive. Petrom's short-term rating is affirmed at B.

Fitch said the action follows a review of the company's privatization transaction, which will see OMV becoming its majority shareholder within the next few days.

While there will be no restrictions on the use of the cash, which will be held on balance sheet, Fitch said it understands from its discussions with the OMV representative at Petrom that it will be used mainly for capital expenditure, largely in domestic upstream, refining and marketing activities.

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