Fitch downgrades PTT

Fitch Ratings said it downgraded PTT PCL's long-term local-currency issuer default rating to BBB+ from A-.

The outlook is stable.

This follows the downgrade of Thailand's long-term local-currency issuer default rating to BBB+ from A- with stable outlook.

Fitch also said it affirmed PTT's long-term foreign-currency issuer default rating at BBB+, short-term foreign-currency issuer default rating at F2, national long-term rating at AAA(tha) and national short-term rating at F1+(tha).

The outlook on PTT is stable.

The national long-term rating on its senior unsecured debentures also was affirmed at AAA(tha).

PTT's standalone credit profile of BBB+ is now the same as Thailand's long-term foreign- and local-currency issuer default ratings of BBB+.

The company’s proved reserves have continuously deteriorated to levels worse than that of upstream peers rated in the BBB category, Fitch said.

The proved reserves segment's operating cash flows continue to decline in 2016, even though its leverage and that of PTT as a whole remains low and liquidity is solid.

PTT's ratings reflect the company's integrated business model and stability of its overall risk profile from large and generally stable mid- and downstream-operations, the agency said.

These operations have buffered the company against large earnings deterioration in its upstream operations since the second half of 2014, Fitch added.

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