Standard & Poor's Ratings Services has affirmed its 'BBB+' long-term corporate credit rating on Petroleum Company of T&T (Petrotrin). The outlook is stable.

In a statement, Standard & Poor’s said its ratings on Petrotrin reflect significant support from the Government, the sole owner of Petrotrin. “The ratings also consider T&T’s position as a leading producer of refined products and the only significant producer of crude oil among Caribbean nations, and Petrotrin’s ability to supply small mixed-cargo deliveries to customers in the Caribbean market,” said Standard & Poor’s credit analyst Enrique Gomez Tagle.

Standard & Poor’s is the world’s leading provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data.

The company said its ratings on Petrotrin were limited by the geographic and asset concentration in refining and in exploration and production, the company’s refinery’s dependence on premium but mature local and regional niche markets, and expectations of a more competitive environment because of Venezuela’s PetroCaribe initiative and other nations’ investment plans.

The company also suffers from a lack of proprietary retail stations and from a contractual obligation to sell fuel to the state-owned marketing company, which restricts the potential for integration and constrains profitability. Plans for heavy capital spending are another constraint for the ratings on Petrotrin.