Fitch rates PTT debentures AA+(tha)

Fitch Ratings said it assigned national long-term ratings of AA+(tha) to PTT plc's (AA+(tha) with stable outlook) new THB6 billion eight-year unsecured and unsubordinated debentures due 2015.

The ratings reflect the company's dominance in the gas and oil business in Thailand and its strategic importance and function as a policy vehicle for domestic energy security and development, the agency said. The ratings are further underpinned by PTT's majority state ownership and strong support, good management track record, as well as its solid and stable cash flow generating capability, Fitch added.

With strong earnings, PTT's financial position has remained solid with net adjusted debt-to-EBITDA of 0.9x for 2006, the agency said.

The ratings also take into account the company's large budgeted capital expenditure, volatile commodity prices exposure, as well as regulatory and political risks, Fitch said.

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