Fitch upgrades Tasco

Fitch Ratings said it upgraded Tipco Asphalt PCL's (Tasco) national long-term rating to A-(tha) from BBB+(tha) and affirmed its national short-term rating at F2(tha).

The outlook is stable.

The upgrade reflects an improvement in Tasco’s financial profile following debt reduction and improved profitability, Fitch said.

The company’s leverage has improved more quickly than expected due to the fall in global crude oil prices, which resulted in a lower working capital requirement and stronger profitability, the agency said.

Fitch also said it expects its credit metrics to strengthen in the medium term as a result of high product margin as asphalt prices have fallen slower than crude-intake costs, crude-oil prices have declined and product demand has been steady.

The company is vulnerable to fluctuations in the prices of raw materials, mainly crude oil, the agency added.

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