S&P places Petrol d.d., Ljubljana on CreditWatch Negative in light of the negative intervention on the motor fuel market (summary of announcement, Bloomberg, 20 July 2022)

On 20 July 2022, Standard & Poor's Rating Services announced on Bloomberg website that it has placed Petrol d.d., Ljubljana’s long-term rating of BBB- and short-term rating of A-3 on CreditWatch Negative.

According to Standard & Poor's Rating Services, the CreditWatch Negative of Petrol d.d., Ljubljana’s long-term rating of BBB- and short-term rating of A-3 reflects the consequences of the negative intervention on the motor fuel market where sellers were forced to sell motor fuels even below the cost as a result of the selling price regulation, and uncertainty as regards the compensation for the loss incurred and the risks related to potential additional interventions on the energy market.

Being placed on CreditWatch Negative could mean that Petrol d.d., Ljubljana’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 Petrol d.d., Ljubljana is not compensated by the Republic of Slovenia for the loss incurred due to the intervention on the motor fuel market within a reasonable period of time.

Nevertheless, Standard & Poor's Rating Services estimates that, given the current situation, the financial risk of Petrol d.d., Ljubljana has not deteriorated.

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mag. Barbara Jama Živalič