Bangkok--13 May--Fitch Ratings
Fitch Ratings has revised the Outlook on PTT Public Company Limited’s (PTT) Long-Term Local-Currency Issuer Default Rating (IDR) to Stable from Negative and affirmed the rating at ‘A-’. A full rating breakdown is provided below.
The Outlook revision reflects Fitch’s yesterday revision of the Kingdom of Thailand’s Long-Term Local-Currency IDR Outlook to Stable from Negative, while affirming the rating at ‘A-’ (see “Fitch Revises Thailand’s Local Currency Rating Outlook to Stable”, available on www.fitchratings.com).
PTT’s Long-Term Local-Currency IDR of ‘A-’ reflects its standalone credit quality, which is at the same level as the sovereign rating. Under Fitch’s parent/subsidiary methodology, the ties between the company and the government are strong enough to ensure that if the standalone rating were ever to be higher than the sovereign rating, PTT’s ratings would be capped at the sovereign’s ratings. Similarly, if PTT’s standalone rating were to be below the sovereign rating, Fitch would notch the rating upwards by one level to reflect the agency’s view of implicit parental support.
PTT’s ratings
Long-Term Local-Currency IDR affirmed at ‘A-’; Outlook changed to Stable from Negative Long-Term Foreign-Currency IDR affirmed at ‘BBB’; Outlook Stable
Short-Term Foreign-Currency IDR affirmed at ‘F3’
National Long-Term rating affirmed at ‘AAA(tha)’; Outlook Stable
National Short-Term rating affirmed at ‘F1+(tha)’
National senior unsecured rating affirmed at ‘AAA(tha)’