Fitch pares PTT Global Chemical

Fitch Ratings said it downgraded PTT Global Chemical PCL’s national long-term rating and senior unsecured rating to AA(tha) from AA+(tha).

“The downgrade reflects Fitch's expectation that Pttgc's financial leverage will be higher than commensurate with an AA+(tha) rating over the next three years, as a result of lower operating cash flows and higher capex in 2022 than we expected. Spreads for petrochemical products are likely to weaken in 2022, due to slower demand growth and new petrochemical capacity. As a result, Fitch expects Pttgc's financial leverage, measured by net debt/EBITDA, to remain above 2.5x until 2024, even after factoring in modest earnings recovery and lower capex from 2023,” the agency said in a press release.

The outlook is stable.

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