S&P lowers PTTEP perpetuals, stand-alone rating

S&P said it affirmed the BBB+ long-term corporate credit rating on PTT Exploration & Production PCL (PTTEP).

The outlook is stable.

The agency also said it affirmed the company's axA+ long-term Asean regional scale rating, along with the BBB+ long-term issue rating on the company's senior unsecured notes and outstanding guaranteed notes.

S&P also said it lowered the ratings on the company's perpetual securities to BB+ from BBB- after lowering the company's stand-alone credit profile to BBB from BBB+.

The agency also said it affirmed the ratings because PTTEP is expected to remain a core subsidiary of its majority shareholder, PTT PCL, over the next two years.

S&P also said it believes the government of Thailand is likely to extend direct support to PTTEP, if needed, given that the company is a major producer of gas in the country.

The agency said it considers PTTEP to be a government-related entity.

S&P also said it believe PTTEP will continue to face ongoing challenges in replacing reserves over the next three- to four-years, at least.

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