Bangkok--18 Jun--Fitch Ratings
Fitch Ratings (Thailand) Limited has assigned PTT Public Company Limited's (PTT, 'AAA(tha)'/Stable/'F1+(tha)') upcoming THB10bn senior unsecured debentures due 2019 a National Long-Term rating of 'AAA(tha)'. The proceeds will be used to refinance debt and fund future capex.
PTT's ratings reflect its dominance in Thailand's gas and oil industry, as well as its strategic importance and function as a policy vehicle for the country's energy security and development. Natural gas is a major fuel for Thailand's electricity generation. PTT is the sole operator in Thailand's mid-and-downstream gas industry. It is also one of the country's major exploration and production companies, and a leading oil and petrochemicals company.
PTT's credit profile is tempered by its vulnerability to fluctuations in commodity prices, significant capex plans, negative free cash flow (after dividend payout) generation expected in the next two years, exposure to regulatory and political risks, as well as some foreign exchange risk.