TRIS assigns TPIPL at BBB+/Stable, Thailand

TRIS assigns TPIPL at BBB+/Stable, Thailand
Published: 03 October 2012


TRIS Rating Co Ltd has assigned the company rating of TPI Polene PLC (TPIPL) at BBB+ with stable outlook. The rating reflects a strong position of TPIPL in domestic cement market as the third largest cement producer, its leading status in LDPE Homopolymer (LDPE) and LDPE Copolymer (EVA), product diversification, expected benefits from cost saving initiatives, and currently low financial leverage.

The rating is, however, partially offset by the cyclical nature of engineering and construction (E&C) sector and petrochemical industry, cost pressure from volatile coal prices, the company's short record in accessing financial markets after debt rehabilitation, and an expected rise in its financial leverage.

The stable outlook reflects the expectation that TPIPL's business strength in the cement business will continue in the medium term and that it will deliver a respectable performance on the EVA segment. (Source: Thai News Service.)