Bangkok--3 Jun--Fitch Ratings Fitch Ratings (Thailand) Limited has today said that the granting of discount on the price of diesel by refinery affiliates of PTT Public Company Limited (PTT, ‘AA+(tha)’/‘F1+(tha)’/Stable Outlook), the national oil and gas company, will not immediately act as negative rating triggers. The agency expects the impact of the discount granted on the refineries’ cash flow and credit metrics to, at this stage, be limited. Nevertheless, the government’s requests to private operators to further subsidise oil prices, or any possible regulatory changes to control ex-refinery prices, could lead to a negative impact on Thailand’s oil refinery sector. PTT’s refinery affiliates have granted a THB3 per litre discount on the price of diesel to the group of users who are highly affected by the rapid increase in oil prices — this includes those in the public transportation and fishery industries, as well as farmers - for the period from June to November 2008. The aggregate amount for the discount will not exceed THB2.2 billion (for all four of the refinery affiliates); this move follows the government’s request to reduce diesel price as a result of substantial increases in oil prices, coupled with historical high refinery margins for middle distillates (although margins on other refined products are lower or negative). Nevertheless, the proposed discount appears relatively small, accounting for about 2% to 3% of the refineries’ 2007 EBITDA. PTT’s refinery affiliates have indicated that this is a temporary discount, which could be terminated if the discount substantially affects their financial position. Fitch notes that a more permanent and significant reversal of Thailand’s policy on liberalised retail oil prices could negatively impact the sector. Note to Editors: Fitch’s National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated ‘AAA’ and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as ‘AAA(tha)’ for National ratings in Thailand. Specific letter grades are not therefore internationally comparable. Contacts: Lertchai Kochareonrattanakul, Wasant Polcharoen, Vincent Milton, Bangkok, +662 655 4755.