July 21 (SeeNews) - Standard & Poor's has placed the 'BBB-' long-term and A-3 short-term credit rating of Slovenia's Petrol [LJE:PETG] on CreditWatch Negative, the energy company said on Wednesday.
CreditWatch Negative reflects the consequences of the negative intervention on the motor fuel market where sellers were forced to sell motor fuels even below cost as a result of the selling price regulation, Petrol said in a filing with the Ljubljana Stock Exchange.
The credit action is also the result of uncertainty as regards the compensation for the loss incurred and the risks related to potential additional interventions on the energy market, Petrol added.
Petrol's rating will be downgraded by one level from the current BBB- to BB+ in the coming months if the situation in the business environment further escalates as a result of the energy price regulation and if the company is not compensated by the government for the incurred loss.
Nevertheless, S&P estimates that the financial risk of Petrol has not deteriorated, the group noted.
Petrol's shares traded down 0.4% at 498 euro by 10:29 CET on Thursday on the Ljubljana Stock Exchange.
($ = 0.982938 euro)