Thai Oil Senior Proposed Unsecured Guaranteed Notes Rated #BBB#

Stocks and Financial Services Press Releases Thursday March 8, 2018 18:09
SINGAPORE--8 Mar--S&P Global Ratings

SINGAPORE (S&P Global Ratings) March 8, 2018--S&P Global Ratings today said it has assigned its 'BBB' long-term issue rating to two proposed senior unsecured guaranteed notes under the global medium-term notes (GMTN) program of Thai Oil Public Co. Ltd. (BBB/Stable/--).

The Thailand-based oil refiner and petrochemical company and its wholly owned finance subsidiary Thaioil Treasury Center Co. Ltd. are co-issuers under the US$1.3 billion program. Thaioil Treasury Center will issue the new bonds. Thai Oil fully, irrevocably, and unconditionally guarantees the notes.

In this like-for-like tender offer, Thai Oil will replace part or all of its two existing debentures maturing in 2023 (US$500 million) and 2043 (US$500 million) with bonds of similar coupon rates and maturities.

The tender offer follows a change in Thailand's tax code in 2017, allowing for withholding tax savings on debts issued by approved entities.

The rating on Thai Oil reflects the company's sound domestic competitive position, robust cash flow generation capacity, and support from its controlling shareholder PTT Public Co. Ltd. (BBB+/Stable/--). Tempering these strengths are the company's cyclical, commoditized, and capital-intensive operations, and potentially rising leverage on large spending in the next four to five years.

The stable outlook on Thai Oil reflects the outlook on the company's parent PTT and our view that Thai Oil will remain a highly strategic member of the PTT group, given the company's operational linkage with the parent and its role as the group's major complex refinery.

We also expect Thai Oil to maintain its record of reliable operations and market position, and remain financially sound through 2019. We anticipate that the company will maintain am adjusted debt-to-EBITDA ratio well below 3.0x over the next 24 months. In 2017, this ratio was 0.6x.

Latest Press Release

Photo Release: MTS Gold Group: the First Thai Local Broker of CME Group

Dr.Kritcharat Hirunyasiri Chairman of MTS Gold Group, and Mr.Nuttapong Hirunyasiri CEO of MTS Gold Group, together with Mr. Christopher Fix Managing Director, Head of Asia Pacific, CME Group, and Mr. Nicolas Dupuis, Senior Directors, Energy Product,...

Credit Guarantee And Investment Facility #AA/A-1+# Ratings Outlook Remains Stable

SINGAPORE (S&P Global Ratings) June 22, 2018--S&P Global Ratings today affirmed its 'AA' long-term and 'A-1+' short-term issuer credit ratings on the Credit Guarantee and Investment Facility (CGIF). The outlook remains stable. We affirmed the...

Asian Development Bank Ratings Affirmed At #AAA# With Stable Outlook

SINGAPORE (S&P Global Ratings) June 22, 2018--S&P Global Ratings said today that it has affirmed its 'AAA' long-term and 'A-1+' short-term foreign currency issuer credit ratings on the Asian Development Bank (AsDB). The outlook remains stable. We...

GPSC Outlook Revised To Negative On The Proposed Acquisition Of #BBB-# Rating Affirmed

SINGAPORE (S&P Global Ratings) June 22, 2018--S&P Global Ratings revised the outlook on Global Power Synergy Public Co. Ltd. (GPSC) to negative from stable. At the same time, we affirmed our 'BBB-' long-term issuer credit rating on the...

River Funding No. 5 Class 1-FR And 1-VF Notes Assigned #AAA (sf)# Rating

HONG KONG (S&P Global Ratings) June 22, 2018--S&P Global Ratings today assigned its 'AAA (sf)' rating to the class 1-FR and 1-VF notes issued by River Funding No. 5. (see list). The notes are backed by a revolving pool of credit card receivables...

Related Topics