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Financial News

Mar 2016 Financial News

PETROTRIN responds to Moody's downgrade

Mar 21, 2016

PORT OF SPAIN, Trinidad (CMC) – The state-owned oil company, PETROTRIN, says the decision by the US-based Moody’s Investors Service to downgrade its unsecured debt rating comes at a time when the company is reducing its operating costs, maintaining crude production levels and improving refinery throughput.

Moody’s last week downgraded the corporate family and senior unsecured debt ratings for state owned energy company PETROTRIN to Ba3 from Ba1. The ratings agency has also lowered the company’s baseline credit assessment (BCA) to b3 from b1.

Moody’s VP-Senior Credit Officer, Nymia Almeida, said the downgrades “reflect the company’s weak liquidity and high refinancing risk, triggered by persistent negative operating performance in the last couple of years.”

She said the expectation is that this trend will continue given current market conditions.

But in a statement, the oil company said that the lowering of the ratings was “due to weak liquidity and refinancing risks.

“The credit rating agency has indicated that this revision is based on the company’s performance in the last couple of years and their expectations of continued challenges ahead given the current market conditions.

“This latest adjustment in our credit rating comes at a time when the company is reducing its operating costs, maintaining crude production levels and improving refinery throughput. It is noteworthy that the rating agency noted unsatisfactory refinery performance which featured in previous years during the construction and commissioning works associated with the gas optimization project.”

But PETROTRIN said that since the commissioning of the upgraded refinery, it has experienced significant improvements in refining operations for 2016.

“This includes very high refinery utilization, high monthly throughput on several process units including the FCCU and the Alkylation unit and the highest month average crude throughput since May 2013.

“At this time, we remain committed to maintain the sustainability of our integrated oil company by continued management of our operating and capital costs, improving the integrity of our assets, improving our safety performance and developing the competence and skills of our employees,” PETROTRIN added.

 

Source:
Jamaica Observer
Monday March 21, 2016

http://www.jamaicaobserver.com/business/PETROTRIN-responds-to-Moody-s-downgrade