Fitch rates PTT debt AAA(tha)

Fitch Ratings said it assigned national long-term ratings of AAA(tha) to two new tranches of PTT plc's five-year and seven-year unsecured and unsubordinated debentures, totaling up to 10 billion in Thai baht.

The ratings reflect PTT's dominance in the gas and oil business in Thailand, Fitch said, as well as its strategic importance and function as a policy vehicle for the country's energy security and development.

The ratings also are supported by its good management track record and solid cash flow generating capability, the agency said.

But its credit profile is tempered by its vulnerability to fluctuation in commodity prices, significant budgeted capital expenditure, exposure to regulatory and political risks and some foreign exchange risk, Fitch said.

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