S&P: GS Caltex unchanged

Standard & Poor's said its ratings on GS Caltex Corp. (BBB+/stable/A-2) would not be impacted by recent news reports regarding the company's participation in the bidding process for a 35% stake in Hyundai Oilbank Co. Ltd. (unrated).

The agency said that the stake in Hyundai Oilbank is being offered by major shareholder IPIC International BV and its subsidiary Hanocal Holding BV, which between them currently hold a 70% stake in the company.

The current lack of impact on the ratings on GS Caltex is mainly due to the fact that the bidding is still at a preliminary stage and thus it is highly uncertain whether or not GS Caltex's tender will succeed, according to S&P.

Nevertheless, considering GS Caltex's large capital expenditure schedule over the next few years and Hyundai Oilbank's highly leveraged financial status, the likely use of debt to purchase the stake in Hyundai Oilbank could put additional pressure on GS Caltex's financial risk profile, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.