Research Update: Thai Oil Downgraded To 'BBB' On Parent's Weakening Creditworthiness; Outlook Stable

Sustained capital spending and investment within the group amid a period of weak earnings has weakened the creditworthiness of PTT Public Co. Ltd., the parent company of Thai Oil Public Co. Ltd. We expect challenging industry conditions to materially reduce Thai Oil's profitability over the next two years, while committed capital investment will keep the company's debt-to-EBITDA ratio elevated at 8x-10x during the period. We therefore lowered Thai Oil's stand-alone credit profile (SACP) to 'b+' from 'bb-'. On Feb. 9, 2021, S&P Global Ratings lowered its long-term issuer credit rating on Thai Oil to 'BBB' from 'BBB+'. At the same time, we lowered our long-term issue rating on the company's senior unsecured notes to 'BBB' from 'BBB+'. The stable outlook

...- Sustained capital spending and investment within the group amid a period of weak earnings has weakened the creditworthiness of PTT Public Co. Ltd., the parent company of Thai Oil Public Co. Ltd. - We expect challenging industry conditions to materially reduce Thai Oil's profitability over the next two years, while committed capital investment will keep the company's debt-to-EBITDA ratio elevated at 8x-10x during the period. We therefore lowered Thai Oil's stand-alone credit profile (SACP) to 'b+' from '##-'. - On Feb. 9, 2021, S&P Global Ratings lowered its long-term issuer credit rating on Thai Oil to '###' from '###+'. At the same time, we lowered our long-term issue rating on the company's senior unsecured notes to '###' from '###+'. - The stable outlook mirrors that of the local currency rating on PTT....

Research Update