Moody's revises Pttgc view to negative

Moody's Investors Service said it revised the outlook for PTT Global Chemical PCL's (Pttgc) to negative from stable and affirmed its Baa2 issuer rating.

The agency also affirmed the Baa2 rating on the backed senior unsecured notes issued by GC Treasury Center Co. Ltd., a wholly-owned subsidiary of Pttgc and the (P)Baa2 senior unsecured rating on the medium-term note program established by GCTC and Pttgc. Any notes sold under the program will be guaranteed by Pttgc.

"The outlook change to negative reflects our view that Pttgc's ability to reduce debt organically will be constrained as margins for chemical products are under pressure. Hence, we expect the company's leverage will remain high for its rating level over the next 12-18 months," said Hui Ting Sim, a Moody's assistant vice president and analyst, in a press release.

"Pttgc will have to rely on inorganic measures to improve its capital structure, which are highly uncertain and subject to execution risk," added Sim, who is also the lead analyst for Pttgc.

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