Moody's lowers Titan Petrochemicals

Moody's Investors Service said it downgraded the corporate family rating of Titan Petrochemicals Group Ltd. to B3 and its bond rating to Caa1.

The ratings continue to be on review for possible downgrade.

The agency said the downgrade was driven by the uncertainty and high execution risk associated with the company's businesses. Although the recently announced business restructuring initiatives may improve the company's business profile in the medium term, Moody's noted that they are to be carried out at a time when the company already faces tight cash flow and high capital expenditure.

The agency expects that Titan's credit metrics will weaken to include a debt-to-EBITDA ratio of 12 times to 15 times.

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