Fitch affirms PTT

Fitch Ratings said it affirmed PTT PCL's long-term foreign-currency issuer default rating at BBB, long-term local-currency issuer default rating at A-, short-term foreign-currency issuer default rating at F3, national long-term rating at AAA(tha), national short-term rating at F1+(tha) and the national long-term rating on its senior unsecured debentures at AAA(tha).

The outlook is stable, while the outlook on the long-term local-currency issuer default rating is negative.

The agency also said it assigned an AAA(tha) national long-term rating to PTT's upcoming 4-year and 7-year senior unsecured debenture with the total amount of up to 10 billion in Thai baht.

The proceeds will be used to refinance the company's existing debt and reserve for capital expenditure.

The ratings reflect its dominance in Thailand's gas and oil industry, its strategic importance and function as a policy vehicle for domestic energy security and development, its good management record and its solid cash flow-generating capability, Fitch said.

The company's credit profile is tempered by its vulnerability to fluctuations in commodity prices, significant budgeted capital expenditure, exposure to regulatory and political risks and some foreign-exchange risk, the agency said.

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