Bulletin: GC's Proposed Perpetual Securities Assessed As Having Intermediate Equity Content

This report does not constitute a rating action. SINGAPORE (S&P Global Ratings) Dec. 3, 2024--S&P Global Ratings assesses PTT Global Chemical Public Co. Ltd.'s (GC) proposed subordinated hybrid debentures as having intermediate equity content. That means only 50% of the planned issuance would, for now, count as debt for the Thailand-based chemical producer. The impact on credit metrics is minor, however, just slightly improving our debt to EBITDA forecast over the next two years. GC (BBB/Stable/--) announced on Dec. 2, 2024 its plans to issue up to Thai baht 17 billion (approximately US$500 million) of subordinated hybrid debentures. The company has earmarked the proposed subordinated debt for refinancing more senior debt. We consider the securities will have intermediate equity content

...December 3, 2024 This report does not constitute a rating action. SINGAPORE (S&P Global Ratings) Dec. 3, 2024--S&P Global Ratings assesses PTT Global Chemical Public Co. Ltd.'s (GC) proposed subordinated hybrid debentures as having intermediate equity content. That means only 50% of the planned issuance would, for now, count as debt for the Thailand-based chemical producer. The impact on credit metrics is minor, however, just slightly improving our debt to EBITDA forecast over the next two years. GC (###/Stable/--) announced on Dec. 2, 2024 its plans to issue up to Thai baht 17 billion (approximately US$500 million) of subordinated hybrid debentures. The company has earmarked the proposed subordinated debt for refinancing more senior debt. We consider the securities will have intermediate equity content up to the first call date (i.e., 5.5 years after the issuance), considering subordination, permanence, and deferability at the company's discretion during the period. The subordinated debentures...

Bulletin