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Moody’s revises PTT ratings down
Moody's Investors Service has revised down its ratings for Thailand’s PTT, the national energy and integrated gas company, issuer and foreign currency bonds from AAA to Baa1 while saying the company's financial status and earnings remain strong.
The ratings agency is maintaining an outlook of "stable" on the company's credit rating, equal to that of the country.
Moody's explained the revision on the rising financial burden of PTT and subsidiary PTT Exploration and Production amid high investment exposure.
PTT posted a net profit of 61.4 billion for the first nine months of 2010 against a full-year figure of 59.6 billion for 2009.
It expects good results for the fourth quarter on soaring prices of crude and related products. Tevin Vongvanich, PTT's chief financial officer, said both companies are operating under strict financial discipline, and the investment exposure will generate good returns.
He said this latest revision will therefore have no affect on PTT's existing financial costs. For future financial sourcing, financial costs will depend largely on market conditions, with PTT's fund-raising decisions based on the least financial impact.
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