Burmah Castol's Outlk Chgd to Stable by S&P; Rtgs Afmd.

LONDON--(BUSINESS WIRE)--Standard & Poor's CreditWire 8/22/97-- Standard & Poor's today affirmed its single-'A'/'A-1' rating of Burmah Castrol Plc and related entities and revised the outlook to stable from positive.

The outlook revision is based on Standard & Poor's expectation of increased competitive pressures in Burmah Castrol's core lubricants markets in Europe and North America and therefore results in somewhat limited prospects for the group's earnings growth going forward. Nevertheless, Burmah Castrol is expected to maintain a strong operating performance, bolstered by its expanded presence in growing Asian-Pacific markets, which provides stability to current ratings. The group's key coverage ratios and capitalisation should remain very comfortable for current ratings while providing Burmah Castrol with financial flexibility to pursue its long term, business growth strategy.

Ratings on Burmah Castrol Plc and related entities reflect the group's strong position as one of the world's leading manufacturer and marketer of specialised lubricants and chemicals. Current ratings are further supported by the group's conservative financial profile and low levels of net debt. These strengths are partially offset by increased competition in the group's key lubricants business in its traditional markets with heightened promotion and pricing pressures going forward. Additionally the groups below average profitability in speciality chemicals and its, now very small, non-core businesses, such as fuel retailing and Liquefied Natural Gas (LNG) transportation, continue to have a dilutive effect on group's above average business profile, Standard & Poor's said. ---CreditWire

CONTACT: Evelyn Heinbach, London (44) 171-826-3614