PTTEP on credit watch

PTTEP on credit watch

BANGKOK (AFP): Standard and Poor said yesterday it placed its "A" long term foreign currency rating for Thailand's PTT Exploration and Production Co. Ltd. (PTTEP) on watch for a possible downgrade.

The decision to put PTTEP on credit watch "with negative implications" followed similar action taken Aug. 1 on Thailand's long-term foreign currency rating, it said in a statement.

The New York-based credit rating agency assesses the risk of lending to major borrowers. A lower rating implies a higher risk and leads lenders to ask for a higher interest rate in return.

PTTEP is 71 percent owned by the Petroleum Authority of Thailand (PTT), which has the monopoly on buying and selling gas in Thailand. It is a strategically important company for the country, hence the equalized ratings, the agency said.

PTTEP said last Thursday total revenue rose 15.6 percent in three months to June, with net income up 35.5 percent. Revenues for the quarter totaled 1.74 billion baht (US$56 millions) against 1.5 billion baht the previous year.