Fitch Warns on Euro Refining

摘要

Following hot on the heels of Swiss-based Petroplus’ decision to shut down three of its five refineries, rating agency Fitch warned Tuesday that credit conditions are likely to deteriorate for other European independent refiners as banks optimize their credit portfolios in 2012 (IOD Jan.3’12). “The highly cyclical nature of the refining industry, European refiners’ weak cash flows since 2009 and the persistent overcapacity make the refining industry one of the corporate sectors to which European banks are likely to reduce credit exposure this year,” said Arkadiusz Wicik, a director in Fitch’s European Energy, Utilities and Regulation team. “Fitch believes that the lower availability of credit will particularly affect leveraged independent refiners, especially those who rely on uncommitted lines or have large debt refinancing plans in 2012,” Wicik added (IOD Dec.29’11)