Fitch rates PTT Chemical bonds A+(tha)

Fitch Ratings said it assigned a national long-term rating of A+(tha) to PTT Chemical plc's new senior unsecured debentures of up to 10 billion in Thai baht due 2013 and 2015, along with an A+(tha) to the its senior unsecured debentures of 500 million in Thai baht due 2015, which were issued to a group of private investors.

Proceeds will be used to fund investments in the company's core business, Fitch said.

The ratings are based on the high level of business and operational integration with its major shareholder, PTT plc, which is rated AAA(tha) with stable view.

The ratings also reflect the company's economy of scale and increasing level of production integration, the agency said. The ratings are further underpinned by its strong financial position and liquidity profile, Fitch said.

The ratings also take into account the cyclical nature of the petrochemicals industry, the execution risks arising from new projects, a large investment plan amid a less favorable operating environment and the company's relatively high exposure to a single market, the agency said.

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