Fitch cuts PTT Chemical to negative

Fitch Ratings said it revised the outlook on PTT Chemical PCL to negative from stable and affirmed its national long-term rating at A+(tha) and national short-term at F1(tha). The agency also said it affirmed its outstanding senior unsecured bonds at A+(tha) and its senior secured debentures at AA-(tha).

The outlook revision reflects expectations that the company's profitability and cash generation are likely to be materially lower than previously expected and that its debt and financial leverage are likely to be higher than expected, Fitch said.

The petrochemicals industry faces the risk of deepening demand contraction as a result of a worsening global economic recession, the agency said.

The ratings also are underpinned by its strong financial position and liquidity profile, Fitch said, although these are likely to weaken in 2009.

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