Moody's rates PTT Public

Moody's Investors Service said it has assigned a Baa1 long-term foreign currency rating to the proposed notes to be issued by PTT Public Co. Ltd.

The outlook is stable.

Moody's said PTT's ratings are supported by its strategic importance as Thailand's state-owned energy company fulfilling the government's energy policy; the integrated nature of its gas operations; and its monopoly position in the gas transmission business which generates stable and predictable earnings.

The ratings also recognize PTT's solid debt protection measures relative to other regional gas companies and the inherent strengths of its upstream subsidiary PTTEP, which is rated Baa1.

At the same time, the ratings consider PTT's large capital expenditure program mainly to expand Thailand's gas transmission pipeline network and commercialize its gas reserves through PTTEP.

Over the next two to three years, Moody's said it expects PTT to maintain an adjusted debt/EBITDA ratio of around 2.2x or below, based on the rating agency's fairly conservative base case assumptions.

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