Moody's: PTT Chemical view negative

Moody's Investors Service said it changed the outlook for the Baa3 domestic-currency issuer rating and foreign-currency senior unsecured rating of PTT Chemical Public Co. Ltd. to negative from stable.

"The change in outlook reflects PTT Chemical's weakening financial profile, resulting in turn from its continuing sizable investments against the backdrop of subdued petrochemical market conditions," Renee Lam, a Moody's vice president, said in a statement.

The Baa3 rating reflects PTT Chemical's leading position in the domestic market, competitive cost structure, secured access to feedstock supply, long-term sales contracts and moderate financial policies, the agency said.

The rating also incorporates the likelihood of support from its parent PTT Public Co. Ltd. (A2/stable).

Moody's said the outlook could return to stable if PTT Chemical maintains an adjusted debt-to-EBITDA ratio at less than 3x on a sustained basis.

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