Bangkok--29 Oct--Moody's
Moody's has today changed the outlook to stable from negative for PTT Exploration and Production Public Company Ltd's (PTTEP) A3 local currency issuer rating and foreign currency bond rating.
"The rating action follows Moody's decision to revise the ratings outlook to stable for PTT Public Company Ltd (PTT), and the outlook revision to stable for Thailand's sovereign ratings," says Renee Lam, a Moody's Vice President and Senior Analyst.
"PTTEP's ratings outlook moves in tandem with the outlook change on that of its parent PTT, as its ratings incorporate an uplift based on strong likelihood of parent support in case of distress situation," says Renee Lam, a Moody's Vice President and Senior Analyst.
PTTEP's final A3 rating factors in a one-notch uplift based on Moody's assessment of the credit support that its parent, PTT (A3/stable), is likely to provide in case of distress.
PTTEP's stand-alone Baa1 rating continues to incorporate the stability afforded by its long-term gas sales contracts, and its strategic role as a gas supplier to Thailand's power sector.
The last rating action on PTTEP was on June 28, 2010 when Moody's downgraded to A3 from A2 PTTEP's local currency issuer rating, and affirming the company's A3 foreign currency issuer rating, with a negative outlook.
The principal methodology used in rating PTTEP was Moody's "Global Independent Exploration and Production (E&P) Industry," published in December 2008. Other methodologies and factors that may have been considered in the process of rating PTTEP can also be found on Moody's website.
PTTEP is engaged in the exploration and production of crude oil, condensate and natural gas. Established by the Petroleum Authority of Thailand (now PTT) in 1985 as part of a national energy strategy, it is now a listed company with PTT retaining 65.35% ownership.