Bulletin: Weaker Operating Conditions Won't Undermine PTT Global Chemical's Strategic Importance To PTT

This report does not constitute a rating action. SINGAPORE (S&P Global Ratings) Aug. 29, 2023--Strong operational links with its parent company will help Thailand-based petrochemical producer PTT Global Chemical Public Co. Ltd. (GC) navigate weaker operating conditions. We believe the parent, PTT Public Co Ltd. (BBB+/Stable/--), has a strong commitment and incentive to provide exceptional support to GC (BBB/Stable/--) if necessary, given GC's high level of product, marketing, and operational integration within the group. A slower than expected recovery in chemical spreads and across GC's product slate owing to lackluster global demand could still ultimately weigh on GC's stand-alone credit quality and further delay deleveraging. Our base case anticipates the company will breach its debt-to-EBITDA ratio threshold of 4x in

...August 29, 2023 This report does not constitute a rating action. SINGAPORE (S&P Global Ratings) Aug. 29, 2023--Strong operational links with its parent company will help Thailand-based petrochemical producer PTT Global Chemical Public Co. Ltd. (GC) navigate weaker operating conditions. We believe the parent, PTT Public Co Ltd. (###+/Stable/--), has a strong commitment and incentive to provide exceptional support to GC (###/Stable/--) if necessary, given GC's high level of product, marketing, and operational integration within the group. A slower than expected recovery in chemical spreads and across GC's product slate owing to lackluster global demand could still ultimately weigh on GC's stand-alone credit quality and further delay deleveraging. Our base case anticipates the company will breach its debt-to- EBITDA ratio threshold of 4x in 2023, before falling below 4x in 2024; a level we view as more commensurate with its stand-alone credit profile (SACP) of '##+'. However, GC's creditworthiness...

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