21 July 2010 06:17 [Source: ICIS news]
SINGAPORE (ICIS news)--Fitch Ratings has affirmed on Wednesday its “A+” national long-term rating for PT Titan Petrokimia Nusantara (TPN), following announcement that its Malaysian parent will be acquired by South Korea’s Honam Petrochemical.
“Fitch believes that Titan Chemicals' credit profile may be enhanced by the proposed acquisition given the operational and financial strengths of Honam,” said the credit ratings firm in a statement.
Fitch’s rating for TPN has a stable outlook, as it expects the Indonesian company to maintain its financial profile despite the anticipated downturn in the petrochemical industry in 2010-2011, it added.
“Nevertheless, the agency may consider a negative rating action in the event TPN has a sustained and weak operating performance, and/or if there is evidence of reduced integration with Titan Chemicals,” Fitch said.
TPN is one of the largest polyethylene producers in
It has two 125,000 tonne/year high density polyethylene/linear low density PE swing plants and a third swing plant with 200,000 tonne/year capacity in
TPN's production volume hit 293,000 tonnes in 2009, recording full-year revenues of $380m (€296m) and an earnings before interests, taxes, depreciation, amortisation and rent (EBITDAR) of $51m, based on Fitch’s data.
($1 = €0.78)
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