PTT's rating intact despite proposed shareholding cut
Standard & Poor's Ratings Services makes no change to its ratings on PTT Plc, following the proposal to lower the government's stake in the company.
PTT is now assigned "BBB" rating with stable outlook.
"We do not believe that such a step lessens PTT's strategic importance to the government. PTT is the only integrated energy company in Thailand, and plays a critical role in developing the country's long-term natural gas supply to ensure energy security, stability, and sustainability," S&P said in a statement.
There are growing calls for the government to reduce its stake in the national oil company from 51 per cent to 49 per cent, to increase the company's business efficiency. Virabongsa Ramangkura, chairman of a government committee on rebuilding strategies, said that this action would also reduce the government's obligations to its debts worth Bt700 billion. In effect, the public debts would be reduced.
