Fitch upgrades Aromatics debentures to A+(tha)

Fitch Ratings (Thailand) Ltd. said it upgraded the National long-term rating assigned to Aromatics (Thailand) PCL's secured and amortizing debentures to A+(tha) from A-(tha) and transferred the rating to PTT Aromatics and Refining PCL in conjunction with the transfer of the debentures to PTT Aromatics from Aromatics (Thailand), which occurred after the recent completion of the amalgamation between Aromatics (Thailand) and Rayong Refinery PCL.

The rating was removed from Rating Watch positive, where it was placed on July 24 following the announcement of the amalgamation, and the outlook is stable.

The agency said the A+(tha) rating reflects PTT Aromatics' high operational link and support from PTT PCL, larger operating scale and more flexible and diversified operation after the amalgamation, the company's secured long-term feedstock and aromatics sale agreements, its modern and complex refinery and its cost-competitive position.

PTT Aromatics' credit strengths are tempered by its high vulnerability to oil prices and gross refinery margin fluctuations, the cyclicality of its aromatics business, the company's relatively high investment plan and its high customer concentration, Fitch said.

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