Kasikorn Securities has reiterated its Outperform rating on PTT Global Chemical Public Company Limited (SET: PTTGC) following the downgraded outlook by Fitch Ratings to Negative from Stable, while affirmed PTTGC’s BBB- rating.
Kasikorn believes that the downgrade may have some impact on borrowing costs, but not a significant impact. This is due to the company having approximately 78% of its debt as fixed-rate and an average loan maturity of 5.8 years. In addition, the company is in the process of continuous deleveraging, with most bonds already repurchased using proceeds from crude credit extension and asset monetization.
Therefore, Kasikorn Securities maintains its “Outperform” recommendation with a target price of 28.70 baht.
