Moody's affirms Aromatics Thailand

Moody's Investors Service said it affirmed the Baa3 issuer rating and foreign currency senior unsecured bond rating of The Aromatics Thailand PCL. The outlook remains stable.

Margin pressure arising from high feedstock costs and weaker-than-expected market conditions for aromatics have negatively impacted the company's performance, the agency said. This situation, coupled with the company's sizeable expansion and investment programs, is expected to result in a deterioration of credit metrics, with adjusted debt to EBITDA averaging around 3x over the next two to three years.

However, Moody's said the ratings are supported by Aromatics Thailand's strong liquidity profile, as supported by its large cash balance, the availability of $270 million of undrawn committed bank facilities and the trade credit facility provided by major shareholder, PTT PCL. Accordingly, the agency predicted that the company will weather any industry downturn in the near to medium term.

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