Fitch ups PTT debt to AAA(tha)

Fitch Ratings said it assigned PTT plc a BBB+ international long-term foreign-currency issuer default rating, A long-term local-currency issuer default rating and F2 short-term foreign-currency issuer default rating. The agency also said it upgraded the national long-term rating to AAA(tha) from AA+(tha), affirmed its national short-term rating at F1+(tha) and upgraded the national long-term rating on its outstanding senior unsecured and unsubordinated debentures amounting to 88.2 billion in Thai baht to AAA(tha) from AA+(tha).

The outlook is stable.

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.

PTT is likely to maintain its monopoly in gas transmission and distribution through its established pipeline network and long-term lease on the gas pipeline that will be transferred back, helped further by a secure demand via long-term sales contracts and the high barriers of entry to its capital-intensive business, the agency said.

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