S&P: GS Caltex view negative

Standard & Poor’s said it revised the outlook on its long-term corporate credit and debt ratings on GS Caltex Corp. to negative from stable and affirmed the BBB- long-term corporate credit and debt ratings and the A-3 short-term corporate credit rating on the company.

“The outlook revision reflects our expectations that GS Caltex’s financial risk profile is susceptible to significant volatility and chronic oversupply in the oil refining industry,” said S&P credit analyst CJ Yun in a news release.

“We believe volatile operating cash flows as a result of business cycles in the oil refining and petrochemical business, and fluctuating oil prices and currency exchange rates may cause debt to EBITDA for the company to breach our downgrade trigger over the next 24 months.”

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