Fitch affirms Tupras

Fitch Ratings said it affirmed Turkiye Petrol Rafinerileri AS's (Tupras) BBB- local- and BB foreign-currency issuer default ratings and AA+(tur) national long-term rating.

The outlook is stable.

The agency said the ratings reflect Tupras' leading position in the Turkish energy sector and its strong balance sheet supported by refining margins that are expected to remain above the historical average in the short to medium term. Furthermore, possible business synergies with Shell and Opet - the second- and fourth-largest player in the Turkish fuel distribution market - will further consolidate Tupras' financial profile, provided that its balance sheet remains strong and is not encumbered in the medium term by the holding company Enerji Yatirimlari AS, which is majority controlled by Koc Holding.

Despite its ongoing capital expenditure program and focus on manufacturing products in line with European Union environmental specifications, gross debt at Tupras remains modest at TRY479 million at for 2005, Fitch said. Gross debt to EBITDA was very strong, however, at 0.5x.

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