Moody's pares PTT Global Chemical

Moody's Investors Service said it downgraded PTT Global Chemical PCL's issuer rating and subsidiary GC Treasury Center Co. Ltd.’s backed senior unsecured notes to Baa3 from Baa2. The agency also lowered to (P)Baa3 from (P)Baa2 the senior unsecured medium-term note program rating under Pttgc; and to (P)Baa3 from (P)Baa2 the backed senior unsecured MTN program rating under GCTC. Any issuance under the MTN program by GCTC will be guaranteed by Pttgc.

"The downgrade reflects our expectation that over the next 12-18 months, PTTGC's leverage will unlikely decline to the levels appropriate for its previous ratings," said Hui Ting Sim, a Moody's assistant vice president and analyst, in a press release.

Anemic earnings and high debt levels helped spike Pttgc’s debt/EBITDA to nearly 21x during the 12 months ended June 2023. However, Moody’s said it sees PTTGC's earnings gradually increasing over 2023-24.

The outlook remains negative.

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