Fitch cuts Bangkok Aviation Fuel

Fitch Ratings (Thailand) said it downgraded Bangkok Aviation Fuel Services PCL’s (BAFS) national long-term rating and senior unsecured rating to BBB(tha) from BBB+(tha). The outlook is stable.

The agency also downgraded the company’s national short-term rating to F3(tha) from F2(tha) and the national long-term rating on its subordinated perpetual debentures to BB+(tha) from BBB-(tha).

“The downgrade reflects Fitch's expectation that BAFS's financial leverage will remain higher than the level commensurate with a BBB+(tha) rating over the medium term, as higher capex and a slower-than-expected earnings recovery will delay deleveraging. We expect BAFS's EBITDA net leverage to remain above 6x for the next two-to-three years,” Fitch said in a news release.

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