Fitch rates IRPC notes A-(tha)

Fitch Ratings said it assigned a national long-term rating of A-(tha) to IRPC PCL's senior unsecured debentures.

The debentures, which will total up to 15 billion in Thai baht, will be issued in three tranches due in 2017, 2019 and 2021.

The proceeds will be used to refinance debt and as working capital, Fitch said.

The notes are rated at the same level as IRPC's national long-term rating as they constitute direct, unsecured, unconditional and unsubordinated obligations of the company, the agency said.

High capital expenditures will hinder IRPC's efforts to reduce its currently high financial leverage in the next two years, Fitch said.

But, IRPC expects to secure more favorable credit terms for crude oil purchases in 2014, in addition to an extension of credit terms in 2013, the agency said. This will support IRPC's liquidity and reduce the need for incremental debt during the heavy investment period in 2013 to 2014, Fitch said.

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