# Fitch Adjusts Thai Oil Public Company Limited’s Outlook to Negative, Maintains ‘A+(tha)’ Rating

- Link: https://www.thailand-business-news.com/companies/185031-fitch-adjusts-thai-oil-public-company-limiteds-outlook-to-negative-maintains-atha-rating
- Published: 2025-01-07T11:08:00+07:00
- Author: Daniel Lorenzzo

Bangkok – 03 Jan 2025: Fitch Ratings (Thailand) has changed the Outlook on Thai 
Oil Public Company Limited’s National Long-Term Rating from Stable to Negative. 
The agency has affirmed Thai Oil’s National Long-Term Rating and senior unsecured
rating at ‘A+(tha)’ as well as its National Short-Term Rating at ‘F1(tha)’.

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The Negative Outlook reflects the risks associated with the delays to the company’s
refinery upgrade and expansion project, Clean Fuel Project (CFP). These risks include
delays in the cash flow from the project and additional capex required to complete
it. This could sustain Thai Oil’s financial-leverage ratio above 4.5x, the level
at which Fitch may take negative rating action.

Fitch anticipates that Thai Oil remains dedicated to preserving a robust credit 
profile and will take steps to manage its leverage effectively. The company aims
to maintain a long-term leverage target below 4.0x, which it intends to achieve 
through strategies such as boosting EBITDA, divesting non-core assets, extending
crude procurement terms, and issuing hybrid securities. Furthermore, Fitch notes
that Thai Oil’s efforts to address delays in the CFP and proceed with the project
suggest potential deviations in cost projections and the construction timeline from
initial estimates.

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Source : [Fitch Revises Thai Oil’s Outlook to Negative; Affirms ‘A+(tha)’ Rating](https://www.fitchratings.com/research/corporate-finance/fitch-revises-thai-oil-outlook-to-negative-affirms-a-tha-rating-03-01-2025)