Moody's rates IRPC notes Baa3

Moody's Investors Service said it assigned a Baa3 corporate family rating to IRPC PCL and a provisional Baa3 senior unsecured rating to the company's proposed issuance of 10-year notes.

The outlook is stable.

The proceeds of the bonds will be used to refinance part of the bridge loans outstanding after IRPC's exit from its recapitalization and debt-restructuring exercise.

The agency said the Baa3 rating reflects the balance of profits arising from the close integration that exists between IRPC's oil refinery operation and fuel production business, the leading positions some of the company's products from its petrochemical operations enjoy in their respective markets in Thailand, the company's modest leverage following the recapitalization and Moody's expectation of support from PTT PLC, a 31.5% shareholder, and the strong and growing links between the two companies in terms of operational and financial management.

Offsetting these strengths are the fact that IRPC functions in a inherently cyclical industry and its operations are concentrated at a single site, Moody's said.

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