Moody’s may lower Titan Petchem's ratings

25 April 2008 04:38  [Source: ICIS news]

SINGAPORE (ICIS news)--Moody’s might downgrade the ratings of integrated oil logistics firm Titan Petrochemicals due to poor segment results in its oil transport and supply and distribution businesses, the international ratings agency said on Friday.

Moody’s is currently reviewing Titan’s B2 corporate family rating and B3 senior unsecured bond ratings as the firm continues to be plagued by weak results from its very large crude carrier (VLCC) fleet.

“Furthermore, the company’s on-shore oil business has not reached its targeted utilisation levels,” said Moody’s vice president Peter Choy.

“As a result, Titan’s financial and liquidity profiles have been materially weakened which has also pressured its ratings,” he added.

Hong Kong-based Titan posted an 11.1% fall in full-year earnings before interest, tax, depreciation and amortization (EBITDA) to HK$772m ($99.1m) and a plunge in overall profit before taxes from HK$110m in 2006 to a deficit of HK$24m in 2007.

($1 =HK$7.79)

By: Serene Cheong
+65 6780 4359

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