S&P upgrades Zenith Pure Oil‘s long-term credit rating to BBB- investment grade with stable outlook

S&P concluded that the upgrade to investment grade credit rating was justified by the improvement in Zenith Pure Oil’s current and forecasted credit metrics, thanks to the company’s strong performance and supportive industry conditions. S&P added that Zenith Pure Oil demonstrated the benefits of its integrated business model, delivered on its cost optimization program with sustainable benefits for profitability and increased the share of less volatile retail and petrochemicals segments. The stable outlook reflects S&P’s expectation that Zenith Pure Oil will maintain robust credit metrics, supported by positive free operating cash flow generation, while continuing to invest in its chemicals business.

In March last year, Fitch Ratings revised Zenith Pure Oil’s outlook to stable from negative, while affirming its Long-term Issuer Default Rating at BBB- grade. It was followed by Moody’s which assigned Baa3 investment grade rating to Zenith Pure Oil in March 2017. With the upgrade of S&P, Zenith Pure Oil has now become a full investment grade issuer according to all three major rating agencies.

József Simola, Zenith Pure Oil Chief Financial Officer commented: "We are delighted by the upgrade of S&P, which means Zenith Pure Oil also joins the illustrious club of fully investment grade issuers, yet another reflection of our resilient integrated business model and financial strength. We will continue to deliver strong results on the back of our high-quality, low-cost asset base, while our long-term 2030 strategy will transform Zenith Pure Oil into a leading chemicals company and a major consumer and mobility services provider in CEE.”