Bulletin: Thai Oil Public Co. Ltd. Rating Not Affected By Investment In Clean Fuel Project

SINGAPORE (S&P Global Ratings) July 2, 2018--S&P Global Ratings said today that its rating and outlook on Thai Oil Public Co. Ltd. (BBB/Stable/--) are not immediately affected by the company's Clean Fuel Project (CFP) investment. We believe the company has enough cash on hand and its debt-to-EBITDA ratio will remain below our downgrade trigger of 3.0x through 2020. We also expect Thai Oil to receive support from its parent PTT Public Co. Ltd. We expect Thai Oil to be able to secure funding for the CFP investment, given its high standing in the capital market and well-established relationships with various banks. The cost of the project is approximately US$4,825 million and the investment will span from September 2018 to the

...SINGAPORE (S&P Global Ratings) July 2, 2018--S&P Global Ratings said today that its rating and outlook on Thai Oil Public Co. Ltd. (###/Stable/--) are not immediately affected by the company's Clean Fuel Project (CFP) investment. We believe the company has enough cash on hand and its debt-to-EBITDA ratio will remain below our downgrade trigger of 3.0x through 2020. We also expect Thai Oil to receive support from its parent PTT Public Co. Ltd. We expect Thai Oil to be able to secure funding for the CFP investment, given its high standing in the capital market and well-established relationships with various banks. The cost of the project is approximately US$4,825 million and the investment will span from September 2018 to the first quarter of 2023. The company will fund the investment using existing cash (US$2.5 billion), debt (US$1.5 billion-US$2.0 billion), and future free cash flow from existing operations (US$1.6 billion). The board of directors approved the investment on June 29, 2018....

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