Moody's: PTT notes at Baa1

Moody's Investors Service said it assigned a Baa1 rating to the senior unsecured 10-year fixed-rate notes to be issued by PTTEP Canada International Finance Ltd., an indirect wholly owned subsidiary of PTT Exploration and Production PCL.

The outlook is stable.

The proposed notes will be irrevocably and unconditionally guaranteed by PTT Exploration.

The proceeds will be used primarily for general corporate purposes.

The ratings combine PTT Exploration's stand-alone rating of Baa2 with a one-notch uplift, reflecting the credit support that its 65.32% parent, PTT PCL is likely to provide in the event of distress, Moody's said.

The rating incorporates the stability afforded by the long-term gas sale contracts, providing cash flow visibility, the agency said.

Countering these strengths is PTT Exploration's rising leverage to support its high medium-term development capital expenditure and growing appetite for acquisitions, Moody's said.

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