Moody’s drops Petrotrin, debt to B1

Moody's Investors Service said it downgraded Petroleum Co. of Trinidad & Tobago (Petrotrin)’s corporate family rating and senior unsecured debt ratings to B1 from Ba3.

Simultaneously, the agency lowered the baseline credit assessment to caa1 from b3.

The outlook is stable.

The actions are linked to Moody's April 25 downgrade of the government of Trinidad & Tobago bond ratings to Ba1 from Baa3, with a stable outlook.

Moody’s said the downgrade was based on the company's sustained weak liquidity position and its limited ability to revert negative operating profit due to rigid cost structure, small operating size, and an unfavorable environment of increasing expenses.

“Petrotrin's B1 debt rating and its caa1 BCA reflect the company's weak credit metrics, high refinancing risk, the cyclical nature of earnings and cash flows, inconsistent operating performance reflected in its low, albeit increased, refinery utilization, and the concentration risk of its reliance on a moderately complex single refinery,” the agency said in a news release.

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