...April 26, 2021 SINGAPORE (S&P Global Ratings) April 26, 2021--S&P Global Ratings today said that PTT Global Chemical Public Co. Ltd.'s (GC) proposed divestment of its power business will enable it to reallocate capital and focus on its core petrochemicals business. The Thailand-based petrochemical company plans to sell its stake in Global Power Synergy Public Co. Ltd. (GPSC; ###-/Stable/--) for about Thai baht (THB) 25 billion. In our view, the divestment proceeds will improve GC's stand-alone cash flow adequacy and alleviate some pressure from elevated leverage level amid a weak earnings period. Given that the sale is an intercompany transaction, we view the rating impact on GC (###/Stable/--) to be neutral. We also believe the sale of the noncore power business accentuates GC's status as PTT group's chemical flagship. The company has a long-term plan to enhance its earnings contribution from performance chemicals and green chemicals. The sale of the GPSC stake will allow GC to focus on...
