PTTEP's outlook stable: Moody's
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Moody's Investors Service has revised PTT Exploration and Production (PTTEP)'s outlook from negative to stable, following the recapitalisation in 2012.
PTTEP is rated "Baa1".
"PTTEP's stable outlook reflects the company's much strengthened financial position following a US$3 billion equity injection in late 2012, and takes into account the expected high level of support from its parent PTT, given that PTT subscribed to PTTEP's equity issuance up to its 65.29 per cent ownership level," said Simon Wong, a Moody's Vice President and senior analyst.
"With retained cash flow (RCF) to debt now expected to be well above 50-60 per cent in 2013-14, PTTEP now has sufficient flexibility to meet upcoming capex requirements and undertake smaller acquisitions without jeopardising its rating", adds Wong.
"The stable outlook also reflects our expectation that the company will maintain a prudent financial discipline and an appropriate debt capital structure for its rating, despite its large investment appetite," added Wong, who is also Moody's Lead Analyst for PTT and PTTEP.
