Moody's affirms IRPC

Moody's Investors Service said it affirmed the Baa3 issuer and senior unsecured bond ratings of IRPC PCL with a stable outlook.

IRPC's ratings incorporate expectation of ongoing weaknesses in performance in 2012, but improved financial metrics in 2013 and beyond, according to the agency.

"However, the imminent completion of two key petrochemical projects, which are margin accretive, will contribution to the recovery of RCF/adjusted debt ratio to 15%-20% in 2013," Simon Wong, a Moody's vice president, said in a statement.

"In addition, the company's weak financial profile in 2012 is partly offset by its ongoing good liquidity. Moreover, Moody's expect IRPC to proactively manage its working capital and capex plans in response to the challenging operating environment," Wong said.

The stand-alone rating reflects the moderate diversity of IRPC's cash flow derived from its oil refining and petrochemicals business and the close operational integration between IRPC and the PTT group.

It also reflects the company's small operating scale and exposure to a single-site complex, the high cyclicality inherent in the oil refining industry and its modest financial flexibility, the agency noted.

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