Fitch assigns AA+ to PTT bonds

Fitch Ratings (Thailand) Ltd. said it has assigned national long-term ratings of AA+ to two new tranches of PTT PCL's 10-year and 15-year unsecured and unsubordinated debentures totaling Thai baht 4 billion, due 2016 and 2021, 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, Fitch said.

The ratings also reflect its majority state ownership and strong support, good management track record, as well as its solid and stable cash flow generating capability.

Nonetheless, the ratings take into account significant budgeted capital expenditure, volatile commodity prices and forex exposure, as well as regulatory and political risks, the agency said.

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