Fitch downgrades SCG Chemicals

Fitch Ratings said it downgraded SCG Chemicals PCL’s (SCGC) national long-term rating and the senior unsecured rating of SCGC's senior unsecured notes and Thai baht 100 billion medium-term note program to A(tha) from A+(tha).

“The rating action follows a downgrade of parent the Siam Cement PCL’s (SCC) national long-term rating to A(tha) from A+(tha). SCGC's ratings are equalized with that of its stronger parent based on SCC's 'medium' legal, 'high' strategic and 'medium' operational incentives to provide support. The downgrade of SCC's ratings reflects its slow deleveraging in the next few years due to weak demand in its chemicals and packaging segments,” Fitch said in a press release.

The outlook is stable.

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