Fitch downgrades BTS to A-(tha)

Fitch Ratings (Thailand) said it downgraded the national long-term ratings on BTS Group Holdings PCL and Bangkok Mass Transit System PCL (BTSC), and senior unsecured ratings on BTSC to A-(tha) from A(tha).

The ratings were removed from rating watch negative and negative outlooks were assigned.

Fitch said the downgrade reflects its expectation that BTS Group's financial profile will deteriorate over the medium-term due to its high debt-funded investment in Bangkok's new urban rail projects, the Pink and Yellow lines.

BTS Group will have far less financial flexibility over the next two to three years as it incurs additional interest costs on debt to fund these projects, the agency added.

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