Fitch: No change for PTT refinery affiliates

Fitch Ratings said the granting of a discount on the price of diesel by refinery affiliates of PTT plc (rated AA+(tha)/F1+(tha) with stable view), the national oil and gas company, will not immediately act as negative rating triggers.

The agency said it expects the impact of the discount granted on the refineries' cash flow and credit metrics to be limited. Nevertheless, the government's requests to private operators to further subsidize oil prices, or any possible regulatory changes to control ex-refinery prices, could lead to a negative impact on Thailand's oil refinery sector, Fitch said.

PTT's refinery affiliates have indicated this is a temporary discount, which could be terminated if the discount substantially affects their financial position. Fitch said a more permanent and significant reversal of Thailand's policy on liberalized retail oil prices could negatively impact the sector.

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