TRIS Rating affirms the rating on the USD300 million guaranteed debentures issued by Indorama Ventures Global Services Ltd. (IVGS) at ?AA-? with a ?stable? outlook. The debentures are fully guaranteed by IVGS?s parent company, Indorama Ventures PLC (IVL). The rating reflects the creditworthiness of IVL as the guarantor of the guaranteed debentures.
Key Rating Considerations
Unconditional and irrevocable guarantee
The rating on IVGS?s guaranteed debentures is equal to IVL?s company rating. Under the terms and conditions of the debentures and the trust deed, IVL unconditionally and irrevocably guarantees to cover all amounts due under the terms of the debentures up to USD330 million (110% of face value), including principal, interest, default interest, expenses, fees, indemnities, and other related expenses. In addition, IVL will be liable as a primary obligor, jointly and severally with IVGS, under the trust deed.
The obligation of IVL under the guarantee is ranked pari passu with all other present and future unsecured and unsubordinated obligations of IVL. The debentures and the trust deed are governed by English law.
Strong credit profile of the guarantor
IVL?s credit profile reflects the company?s leading position in the polyester value chain. IVL has competitive edge stemming from its vertical integration of production as well as diversification of production locations and customers across Asia, North America, South America, Europe, Africa, and Australia. The credit assessment on IVL has taken into consideration the volatile nature of the petrochemical industry.
RATING OUTLOOK
The ?stable? rating outlook on IVGS?s guaranteed debentures solely reflects the ?stable? outlook of the rating on the guarantor, IVL.
RATING SENSITIVITIES
The rating on IVGS?s guaranteed debentures may change in tandem with changes in the rating on its guarantor.
COMPANY OVERVIEW
IVGS was established on 13 December 2013 by IVL. As of June 2022, IVL held 99.99% shareholding in IVGS.
IVGS has been qualified for the ?International Headquarters? in accordance with the promotional privileges from the Board of Investment of Thailand (BOI) since 2015. In addition, IVGS received a ?treasury center license? from the Ministry of Finance (MOF) in 2016 and was qualified as an ?international business center? in accordance with the rules and regulations of the Revenue Department (RD) of Thailand in mid-2019.
As of December 2021, IVGS?s total assets were THB209.6 billion, of which THB138.3 billion was loans to related companies. IVGS?s total equity was THB47.4 billion at the same period.
RELATED CRITERIA
- Group Rating Methodology, 7 September 2022
- Corporate Rating Methodology , 15 July 2022
- Key Financial Ratios and Adjustments for Corporate Issuers, 11 January 2022
- Issue Rating Criteria, 15 June 2021
Indorama Ventures Global Services Ltd. (IVGS)
Issue Rating:
ISIN: XS2048606375: USD300 million guaranteed bonds due 2024 AA-
Rating Outlook: Stable ? TRIS Rating Co., Ltd./www.trisrating.com Contact: santaya@trisrating.com, Tel: +66 0 2 098 3000/Silom Complex Building, 24th Floor, 191 Silom Road, Bangkok 10500, Thailand ? Copyright 2022, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution, or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited, without the prior written permission of TRIS Rating Co., Ltd. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient?s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information. All methodologies used can be found at www.trisrating.com/rating-information/rating-criteria