Fitch rates PTT Chemical bonds AA-

Fitch Ratings said it assigned A+(tha) national long-term and F1(tha) national short-term ratings to Thailand-based PTT Chemical PCL's senior unsecured debt and an AA- national long-term rating to its senior secured bonds.

The outlook is stable.

The company is a result of the recent amalgamation between Thai Olefins PCL and National Petrochemical PCL.

The ratings are based on its projected rise in importance to PTT PCL as its single flagship company in the gas-based petrochemical business, the increased scale of operation after the amalgamation and the company's relatively strong pro-forma financial position, the agency said.

Fitch estimated the company's net debt/annualized EBITDA ratio at 0.5x. Despite the large capex plans and dividend payout, its financial leverage should remain relatively strong at less than 2.0x for net debt/EBITDA ratio, in line with PTT's internal financial guidelines.

PTT is likely to hold a 50% stake in PTT Chemical, followed by Siam Cement PCL with 19.4%, the agency said.

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