Bangkok--16 Apr--Fitch Ratings
Fitch Ratings has today downgraded Thailand-based PTT Public Company Limited's (PTT) Long-term foreign currency Issuer Default Rating (IDR) to 'BBB' from 'BBB+', Long-term local currency IDR to 'A-' (A minus) from 'A', and Short-term foreign currency IDR to 'F3' from 'F2'. The Outlook is revised to Stable from Negative. PTT's National ratings and Outlook remain unchanged with its National Long-term rating at 'AAA(tha)'/Stable and its National Short-term rating at 'F1+(tha)'.
The downgrade of PTT's international ratings is triggered by the agency's downgrade of the Kingdom of Thailand's ratings. Fitch has downgraded the Kingdom of Thailand's Long-term foreign and local currency IDRs to 'BBB' from 'BBB+' and to 'A-' (A minus) from 'A', respectively, and the Short-term foreign currency IDR to 'F3' from 'F2'. For further details, please see the commentary entitled "Fitch Downgrades Thailand to 'BBB'", available on the agency's subscriber website, www.fitchratings.com.
PTT's Long-term foreign currency IDR of 'BBB' is capped by Thailand's Long-term foreign currency IDR, given the state's majority ownership in PTT and due to the fact that the company's main operations are concentrated in Thailand. However, as Thailand's Long-term local currency IDR is now at the same level as PTT's stand-alone local currency IDR of 'A-' (A minus), a one-notch uplift to reflect implicit support is no longer relevant. As the National ratings are a relative measure of creditworthiness between the sovereign and other issuers within Thailand, PTT's National ratings are not affected.
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, Bangkok, +662 655 4760; Steve Durose, Sydney, +612 8256 0307; Vincent Milton, Bangkok, +662 655 4759.
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