Fitch revises IRPC outlook to negative

Fitch Ratings said it revised IRPC PCL's outlook to negative from stable while affirming the A-(tha) national long-term rating. The agency also affirmed the A-(tha) rating on IRPC's senior unsecured debentures and Thai baht 40 billion medium-term debenture program.

Fitch also assigned IRPC’s upcoming Thai baht 42 billion medium-term debenture program a national long-term rating of A-(tha).

“ The negative outlook reflects the risk that IRPC's financial leverage - measured by EBITDA net leverage - will remain above 5.5x in 2023 and beyond. Fitch expects IRPC's EBITDA net leverage to reduce to about 5.5x in 2023 and decrease further in 2024 from 13.2x in 2022, as we expect operating cash flow to improve. However, IRPC's financial leverage could be sustained above 5.5x if demand or margins weaken on a slowdown in the economy in 2023 and beyond, which could constrain the earnings recovery and the company's deleveraging,” Fitch said in a press release.

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