Standard & Poor’s Rating Services put Petrol’s rating on CreditWatch Negative due to the negative intervention in the motor fuel market. The agency put Petrol’s long-term rating of BBB- and short-term rating of A-3 on CreditWatch Negative. Also, the agency estimates that the financial risk of Petrol has not deteriorated.

Standard & Poor’s Rating Services placed Petrol’s rating on CreditWatch Negative due to the negative intervention in the motor fuel market. Standard & Poor’s placed Petrol’s long-term rating of BBB- and short-term rating of A-3 on CreditWatch Negative. The new rating should reflect 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 direct price regulation. Furthermore, the rating should reflect uncertainty regarding compensation for the loss incurred and risks related to potential additional interventions in the energy market.

Being placed on CreditWatch Negative could result in Petrol’s rating being downgraded by one level from the current BBB- to BB+ in the upcoming months. This should occur if the situation in Petrol’s business environment further escalates as a result of the energy price regulation and if Petrol 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. Also, Standard & Poor’s Rating services estimates that the financial risk of Petrol has not deteriorated given the current situation.

We emphasize Petrol will publish its guidance for 2022. along with the Company’s H1 results in August.