S&P: GS Caltex to positive

S&P said it revised the outlook on GS Caltex Corp. to positive from stable.

The agency also said it affirmed the company’s BBB long-term corporate credit and debt ratings and A-2 short-term rating.

The positive outlook reflects an expectation that the company is likely to maintain a prudent financial policy and solid operating cash flow over the next 12 to 24 months, S&P said.

The agency said it expects the company will continue to improve its debt-to-EBITDA to about 1.2x to 1.4x during this period.

The company's solid operating cash flows will be sufficient to cover increasing – but still relatively stable – capital expenditure and dividends over the next one to two years, leading to continuous debt reduction, S&P said.

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