Fitch rates PTT notes AAA(tha)

Fitch Ratings (Thailand) Ltd. said it assigned PTT PCL's (AAA(tha)/stable/F1+(tha)) upcoming 10 billion baht senior debentures due 2019 a national long-term rating of AAA(tha).

Proceeds will be used to refinance debt and fund future capital expenditures.

PTT's ratings reflect its dominance in Thailand's gas and oil industry, as well as its strategic importance and function as a policy vehicle for the country's energy security and development, the agency said.

PTT's credit profile is tempered by its vulnerability to fluctuations in commodity prices, significant capex plans, negative free cash flow (after dividend payout) generation expected in the next two years, exposure to regulatory and political risks, as well as some foreign exchange risk, the agency noted.

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