Thai Oil, PTTGC and IRPC
Moody's put Thai Oil, PTTGC and IRPC on review for downgrade following action on parent
Moody's Investors Service has placed all ratings of Thai Oil Public Company Limited (Thai Oil), PTT Global Chemical Public Company Limited (PTTGC) and IRPC Public Company Limited (IRPC) on review for downgrade. A list of the rating actions appears below.
RATINGS RATIONALE
The review on the ratings of the aforementioned related entities follows the review for downgrade on the ratings of parent, PTT Public Company Limited (PTT) initiated on 22 January 2016. Moody's rating rationale was set out in the press release titled "Moody's reviews 7 south and south east Asian energy companies for downgrade", which was published on the
same day.
Thai Oil's Baa1 senior unsecured ratings and PTTGC's Baa2 issuer and senior unsecured ratings incorporate a one-notch uplift, reflecting the close business integration with PTT as well as Moody's assessment of the high likelihood of support from PTT.
IRPC's Ba1 corporate family and senior unsecured ratings benefit from a two-notch uplift given PTT's willingness to provide additional working capital and intercompany funding support since 2013, and the high likelihood of PTT providing extraordinary credit support in a situation
of stress.
The review will primarily focus on the assessment of implications on parental support for the three companies on the back of a deterioration of the parent's credit strength. The review will conclude following the completion of review on PTT by the end of the first quarter. A downgrade
of PTT's ratings would likely result in a similar rating action on the ratings of Thai Oil, PTTGC and IRPC.
The following ratings are placed on Review for Downgrade:
Issuer: PTT Global Chemical Public Company Limited
Issuer Rating (Foreign Currency), Placed on Review for Possible Downgrade, currently Baa2
Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently Baa2
Issuer: IRPC Public Company Limited
Corporate Family Rating, Placed on Review for Possible Downgrade, currently Ba1
Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently Ba1
Issuer: Thai Oil Public Company Limited
Senior Unsecured Medium-Term Note Program, Placed on Review for Possible Downgrade, currently (P)Baa1
Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently Baa1
Thai Oil Public Company Limited is the leading refining and petrochemical company in Thailand. It operates the largest single-site refinery in the country with a nameplate capacity of 275,000 barrels per day. Thai Oil is 49.1% owned by PTT Public Company Limited.
PTT Global Chemical Public Company Limited (PTTGC) is the largest diversified petrochemical company in Thailand, with 8.75 million tons of petrochemical production capacity and 280,000 barrels per day (bpd) of upstream distillation capacity. PTTGC is 48.9% owned by PTT Public
Company Limited.
IRPC Public Company Limited (IRPC) is a domestic crude oil refiner and supplier of petroleum products in Thailand. It operates the country's second largest oil refinery with a nameplate capacity of 215,000 barrels per day. IRPC is 38.51% owned by PTT Public Company Limited.
PTT Public Company Limited (PTT) is an integrated oil, gas and petrochemical company based in Thailand. Its largest shareholder is the Ministry of Finance, which owns 51.1% of its total share capital, while the government-invested Vayupak Mutual Funds owns a further 14.9% stake
in the company.
