Moody's cuts IRPC view to negative

Moody's Investors Service said it changed the outlook to negative from stable for the Baa3 issuer and senior unsecured bond ratings of IRPC plc.

The downgrade reflects IRPC's weak results in the fourth quarter of 2008 and for full-year 2008, Moody's said, combined with concerns over continued weakness in the oil refining sector. This could lead to a sustained weakening in the company's financial profile, the agency said.

Moody's said it is concerned about the challenging operating environment in 2009 and possibly 2010, when demand for refined and petrochemical products is likely to remain weak.

The company's Baa3 rating has limited cushion to absorb such downside risk, with key financial metrics likely to exceed the tolerance level set for the rating in 2009, and possibly 2010, Moody's added.

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