Fitch Ratings (Thailand) has affirmed IRPC Public Company Limited (IRPC)’s National Long-Term Rating at ‘A-(tha)‘, and its National Short-Term Rating at ‘F2(tha). The Outlook is Stable. The agency has also affirmed the ‘A-(tha)’ rating on IRPC’s senior unsecured debentures and 28 billion baht medium-term debenture programme.
Fitch expects IRPC’s financial leverage to continue to decrease in 2021, but stay above the negative threshold of 5.5x in 2021, and improve further to around 5x in 2022, supported by a gradual recovery in operating cash flows. That said, IRPC’s leverage is sensitive to product spreads and remains highly vulnerable to industry volatility.