Fitch placed KMG International’s long-term foreign currency issuer default rating of ‘B+’ on rating watch negative, the rating agency said.
“KMG International ownership change may result in weaker ties with its current parent, KazMunayGas, leading to a rating downgrade. Post-deal the credit profile of KMGI will also depend on the plans of the new shareholder regarding the funding and strategy of KMGI,“ Fitch said.
International newspapers reported Wednesday that China Energy Company agreed to buy a 51% stake in KMG International.
KMG International is fully owned by Kazakh state-run oil and gas company KazMunayGas.
On European level, KMG International owns over 1,000 filling points in Romania, the Republic of Moldova, Bulgaria, France, Spain, Georgia. The group operates two refineries – Petromidia Navodari and Vega Ploiesti.
KMG International is the largest shareholder of oil company Rompetrol Rafinare, with 48.1%, followed by the Romanian state, with a 44.69% stake.