Fitch affirms Thai Oil

Fitch Ratings (Thailand) said it affirmed Thai Oil PCL’s national long-term rating at AA-(tha) with a stable outlook after the company announced its final investment decision on its clean-fuel project (CFP).

The agency also affirmed the company’s national short-term rating at F1+(tha) and the national long-term rating on its senior unsecured debts at AA-(tha).

Fitch said the affirmation reflects Thai Oil’s continued strong business profile in Thai refinery and petrochemical businesses.

The agency expects the company’s financial leverage to increase temporarily during the high investment periods in 2019-2022, then to fall to a level commensurate with its rating after the CFP commences full operation in 2023.

The CFP investment is likely to improve Thai Oil’s business profile, increase its refining capacity and enhance its refining complexity and competitiveness, Fitch added.

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