TRIS Rating Co., Ltd. has placed the company and issue ratings of The Bangchak Petroleum PLC (BCP) on CreditAlert with a “negative” implication. The rating action follows the fire accident at BCP’s refinery located on Sukumvit 64, Bangkok.
The fire occurred on 4 July 2012, at Kerosene Stripper of the 80,000 barrels per day (bpd) crude distillation unit (CDU), accounted for 66.7% of BCP’s total capacity of 120,000 bpd. The refinery complex will be shut down entirely for approximately seven days. The affected CDU is expected to be shut down for at least 30 days, to investigate the cause of the accident and damage. The repair period is expected to be taken for approximately three months.
TRIS Rating expects to resolve the CreditAlert after the full impact of the accident can be assessed. A rating confirmation would be likely if BCP’s refinery can resume operation within a short period, and if the damage is covered by insurance. A rating downgrade could occur if BCP's refinery was severely damaged by the accident, and the damage materially impairs BCP’s financial performance. — End
CREDITALERT DESIGNATION: Negative Company Rating: A- Issue Ratings: BCP194A: Bt2,000 million senior debentures due 2019 A- BCP224A: Bt1,000 million senior debentures due 2022 A-
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