Fitch rates PTT Chemical debentures A+(tha)

Fitch Ratings said it assigned national long-term ratings of A+(tha) to PTT Chemical plc's new senior unsecured debentures of up to THB6 billion, due 2012 and 2017. The proceeds from the new debentures will be used to fund the company's new investments, working capital and refinancing of the maturing debt.

The ratings are based on the high level of business and operational integration with PTT Chemical's major shareholder, PTT plc, which is rated AA+(tha) with stable view, Fitch said.

The ratings also factor in the company's favorable feedstock arrangement with PTT and its significant size and increasing level of production integration via downstream units, the agency said.

The ratings are underpinned by PTT Chemical's strong financial position and liquidity profile, but also take into account the cyclical nature of the petrochemicals industry, execution risks and the company's high exposure to a single market, the agency added.

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