Moody's may up PTT Chemical, affirms PTT Aromatics

Moody's Investors Service said it affirmed the Baa2 issuer and senior ratings on PTT Aromatics & Refining PCL and placed on review for possible upgrade the Baa3 issuer and senior ratings on PTT Chemical PCL.

The outlook was changed to stable from negative.

These actions are taken in response to the planned merger of PTT Aromatics and PTT Chemical, Moody's said, and the expected improvement in operating performance of both companies.

The merger will be conducted via a share swap, the agency said.

The new entity will assume all the existing debt of both companies, including the rated bonds.

Should the transaction close, Moody's said it expects to assign a Baa2 rating on the new entity.

The new company would benefit from a larger scale and enhanced product flexibility from the amalgamation of the companies' previously separate refining and petrochemical production chains, the agency said.

It also stands to become the largest diversified petrochemical company in Thailand, Moody's added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.