S&P: PTT unaffected

Standard & Poor's said that plans by Thailand's integrated oil and gas company PTT Public Co. Ltd. (foreign currency BBB+/stable/--; local currency A-/stable/--) to purchase a 30% stake in Thai Petrochemical Industry Public Co. Ltd. (TPI) does not by itself result in any impact on PTT's ratings.

PTT will spend Thai baht 20.3 billion for the acquisition of the TPI stake.

S&P said TPI is one of the larger petrochemical manufacturers in Thailand and it has been in negotiations to restructure its massive debt of $2.7 billion. Upon completion of the purchase, PTT's cash holdings will be reduced and PTT could be expected to provide some degree of financial support to TPI. Despite the expected weakening of PTT's financial profile, however, the ratings on PTT will remain enhanced by the expectation of strong government support, the agency said.

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