S&P upgrades GS Caltex

S&P said it raised its ratings for GS Caltex and its senior unsecured debt to BBB+ from BBB.

“Our rating upgrade reflects GS Caltex's prudent investment policy with ongoing debt reduction. We expect GS Caltex to continue to reduce debt and maintain robust financial metrics over the next one to two years, despite moderating operating performance. GS Caltex's adjusted debt decreased to Korean won (KRW) 4.7 trillion in 2023 from KRW 5.4 trillion in 2022 even with earnings moderation,” S&P said in a press release.

However, the agency said it forecasts GS Caltex's operating performance to moderate and operating cash flow to remain steady over the next one to two years. We forecast GS Caltex's annual EBITDA to decrease to KRW 2.3 trillion-KRW 2.5 trillion in 2024 and 2025, compared with KRW 2.8 trillion in 2023.

The outlook remains stable.

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