Fitch: Petrol AD’s extension is distressed exchange

Fitch says it considers the recently implemented three month maturity extension of Bulgarian company Petrol AD’s €87m bond a distressed debt exchange. As a result, the agency is likely to downgrade Petrol AD’s long term issuer default rating (IDR) to RD (restricted default) from C on October 26, 2011, the original maturity date of the 8.37% bond. The senior unsecured rating of the fuel distribution company’s notes is likely to be affirmed at C on this date. Fitch expects Petrol AD’s IDR to stay at RD for 14 days and to be raised to the appropriate IDR to reflect the company’s future prospects after that. Together with the proposal in September to extend the bond maturity, the company also invited bondholders to offer to sell up to €10m of bonds for cash to Petrol AD at 85% of their nominal value. Petrol AD purchased €11.8m of notes.

• Status
  outstanding
• Country of risk
  Bulgaria
• Redemption (put/call option)
  *** (***)
• Amount
  18,659,000 EUR
• М/S&P/F
  — / — / —

• Full name
  Petrol AD
• Registration country
  Bulgaria
• Industry
  Oil and gas