Published:
Monday, March 30, 2015
Moody’s Investors Service has assigned state-owned Petrotrin an investment grade rating of Baa3 with a stable outlook from international credit rating agency. This follows the agency’s annual review of the company’s operations last month, Moody’s said key factors contributing to Petrotrin’s favourable rating include support from the shareholder, single Asset refinery risk mitigated by degree of upstream (Exploration and Production) integration and a strong market position.
The agency said Petrotrin’s refining margins in 2014 were negatively impacted from negative fuel oil margins, rising global refined product supply and product marketers introducing low sulfur diesel in the Caribbean region but positively commented on the degree of operational integration provided by the company’s exploration and production division, offsetting its reliance on its refining operations.
Moody’s also took note of Petrotrin’s strong market position in T&T and the competitive advantage enjoyed by the company in the Eastern Caribbean petroleum product exports markets as a result of its flexibility in accommodating customer requirements and the premium service it provides.
Commenting on the agency’s report, Petrotrin said in a statement: “Given the challenges currently facing operators in the global energy market, Petrotrin welcomes this rating affirmation as the company continues to implement strategic initiatives geared towards securing its long term viability.”
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