Research Update: PTT Global Chemical Downgraded To 'BBB' On Parent's Weakening Creditworthiness; Outlook Stable

We believe the creditworthiness of PTT Global Chemical Public Co. Ltd.'s (GC) parent, PTT Public Co. Ltd. (PTT), will be weighed down by weak earnings and sustained growth aspirations across the group. Meanwhile, unsupportive conditions in the petrochemical industry will hamper GC's earnings in 2021-2022, though the absence of sizable capital spending over the period should ease the impact. We continue to assess the Thailand-based petrochemical company's stand-alone credit profile (SACP) at 'bbb-'. On Feb. 9, 2021, S&P Global Ratings lowered its long-term issuer credit rating on GC to 'BBB' from 'BBB+'. We also lowered the long-term issue rating on the senior unsecured notes issued or guaranteed by the company to 'BBB' from 'BBB+'. The stable outlook on GC mirrors

...- We believe the creditworthiness of PTT Global Chemical Public Co. Ltd.'s (GC) parent, PTT Public Co. Ltd. (PTT), will be weighed down by weak earnings and sustained growth aspirations across the group. - Meanwhile, unsupportive conditions in the petrochemical industry will hamper GC's earnings in 2021-2022, though the absence of sizable capital spending over the period should ease the impact. We continue to assess the Thailand-based petrochemical company's stand-alone credit profile (SACP) at '###-'. - On Feb. 9, 2021, S&P Global Ratings lowered its long-term issuer credit rating on GC to '###' from '###+'. We also lowered the long-term issue rating on the senior unsecured notes issued or guaranteed by the company to '###' from '###+'. - The stable outlook on GC mirrors that of the local currency rating on its parent PTT....

Research Update