Fitch rates PTT debentures AA+(tha)

Fitch Ratings (Thailand) Ltd. said it has assigned national long-term ratings of AA+(tha) to two new tranches of PTT PCL's (AA+(tha)/positive/F1+(tha)) six-year and 10-year unsecured and unsubordinated debentures totaling Thai baht 12 billion, due 2011 and 2015, respectively.

PTT's ratings reflect its dominance in the gas and oil business in Thailand, its strategic importance and function as a policy vehicle for Thailand's energy security and development, majority state ownership and strong support, good senior management track record and solid cash flow generation, Fitch said.

PTT enjoys a natural monopoly in gas transmission and distribution through its established network, secure demand via long-term sales contracts and the high barriers of entry to its capital-intensive business, Fitch said.

The ratings also take into account significant budgeted capital expenditure, volatile commodity prices and forex exposure as well as regulatory and political risks, Fitch said.

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