Moody's rates PTT Public Co.

Moody's Investors Service said it assigned an A3 local currency issuer rating to PTT Public Co. Ltd. and assigned a Baa1 foreign currency issuer rating.

Moody's has an existing long-term rating of Baa1 assigned to PTT Exploration & Production Co. Ltd., which is PTT's upstream subsidiary.

The outlook is stable.

Moody's said the A3 local currency issuer rating is supported by PTT's strategic importance as Thailand's state-owned energy company fulfilling the government's energy policy; the integrated nature of its gas operations; its monopoly position in the gas transmission business and Moody's expectation of continued stability in the government's regulatory policy towards the gas sector.

The A3 rating considers PTT's large capital expenditure program mainly to expand Thailand's gas transmission pipeline network and commercialize its gas reserves through PTT Exploration and Production.

Moody's said it expects PTT's ratio of gross debt/EBITDA to improve to below 2.0x over the next 2 to 3 years.

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