S&P rates Trinidad Petroleum BB

S&P said it assigned a long-term BB issuer credit rating to Trinidad Petroleum Holdings.

S&P also said it placed the rating on CreditWatch with negative implications.

The negative CreditWatch listing reflects a view of the refinancing risks the company will face in the next few months, given that its $850 million bullet notes mature Aug. 14, the agency said.

If the company is unable to refinance the notes in the first quarter of 2019, S&P said it could lower the ratings.

The rating actions follow the corporate reorganization that the company started in the last quarter of 2018 in order to improve the overall efficiency of the group and to focus on more profitable segments, the agency explained.

As a result, the refining business was shut down and four new entities were created: Heritage Petroleum Co. Ltd., Paria Fuel Trading Co. and Guaracara Refining Co. Ltd., along with the new holding company, Trinidad Petroleum, which will hold the international bonds transferred from Petrotrin.

The agency also said it withdrew the BB ratings on Petroleum Co. of Trinidad & Tobago Ltd. (Petrotrin).

The ratings reflect a very high likelihood of government support from Trinidad and Tobago in the event of financial distress, S&P said.

The government owns 100% of the company and is actively involved in the day-to-day operations and key decisions, 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.