Fitch rates PTT Global Chemical notes AA(tha)

Fitch Ratings said it assigned an AA(tha) national long-term rating to PTT Global Chemical PCL's new senior unsecured debentures.

The debentures have a four-year tenor and will total up to 10 billion in Thai baht.

The debentures are rated at the same level as PTT Global Chemical's national long-term rating as they represent senior unsecured obligations of the company, Fitch said.

The proceeds will be used as working capital, refinance the existing debts or to fund future capital expenditure, the agency said.

Fitch said it expects capital expenditure and investment to rise over 2017 through 2021 due to the company's investments in two large projects.

The increase in investment in 2017 also includes the acquisition of six petrochemical companies from its major shareholder, PTT PCL, which was completed in July 2017, the agency said.

The company benefits from a favorable feedstock supply arrangement with PTT, which reduces margin volatility when market conditions fluctuate, Fitch said.

PTT Global Chemical's credit profile is tempered by its vulnerability to the highly cyclical petrochemical sector and fluctuations in refining margins and crude oil prices, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.