Fitch downgrades IRPC to A-(tha)

Fitch Ratings said it downgraded IRPC PCL’s national long-term rating and senior unsecured rating to A-(tha) from A(tha).

“The downgrade reflects Fitch's expectations that IRPC's credit metrics will remain elevated due to weak margins, affecting operating cash flows. We expect IRPC's financial leverage - measured by FFO net leverage – to remain above 4.5x over the next three years with earnings in 2020 hurt by weak demand and margins due to the disruptions caused by the coronavirus. However, we think refining and petrochemical spreads will recover gradually in 2021-2022,” said Fitch in a press release.

The outlook is stable.

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