Moody’s might cut Petrotrin

Moody’s Investors Service said it placed Petroleum Co. of Trinidad & Tobago's (Petrotrin) B1 corporate family rating and senior unsecured debt ratings on review for downgrade.

The agency said the action is based on the lack of clarity regarding Petrotrin's new business profile and strategy as well as increasing liquidity risk related to the approaching maturity of the 2019 bonds.

“Petrotrin has a weak financial condition, reflected in its high adjusted debt leverage of 6.2 times and low adjusted interest coverage of 2 times in March 2018,” Moody’s said in a news release.

“In addition, the government recently announced that it will close Petrotrin's refinery and the company will focus on its upstream exploration and production business. Petrotrin's new business profile and strategy is still unclear, which put to question its medium-term financial prospects.”

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