03 May 2005 03:50 [Source: ICIS news]
SINGAPORE (CNI)--Thailand's integrated oil and gas company PTT pcl's plan to purchase a 30% stake in Thai Petrochemical Industry (TPI) does not have any impact on PTT's ratings, according to credit rating agency Standard & Poor's Ratings Services.
PTT will spend Baht20.3bn ($513m) for the acquisition of the TPI stake.
TPI, which is one of the larger petrochemical producers in Thailand, is in the midst of restructuring its massive debt of $2.7bn. After the purchase, PTT's cash holdings will be reduced and PTT could be expected to provide some financial support to TPI.
PTT's ratings were mostly unaffected by the TPI share purchase because of the expectation of strong government support.
The government has a strong incentive to ensure PTT's financial viability, given PTT's vital role in implementing the country's energy policies and to support the country's petrochemical industry.
The move to buy TPI share is in line with PTT's role and the government's continued efforts to strengthen the local petrochemical industry via PTT.
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