S&P affirms PTT PCL

Standard & Poor's said it affirmed Thailand-based PTT PCL's BBB+ foreign-currency and A- local-currency corporate credit ratings and BBB+ senior unsecured notes. The outlook is stable

S&P said the ratings on PTT reflect its strategic importance and strong public policy role, attractive growth prospects and strong competitive position in its core natural gas business, high degree of integration, adequate cash flows and satisfactory financial profile. Funds from operations to debt was 40% in 2005.

These strengths are offset by the company's customer concentration risks, as about 75% of its gas production in 2005 was sold to the country's power sector, of which 34% was supplied to Electricity Generating Authority of Thailand; exposure to mismatch in cash flows; and relatively weaker petrochemical and refining associates, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.