MUMBAI (Thomson Financial) - Fitch Ratings (Thailand) Ltd said PTT Public Co
Ltd's national ratings remain unaffected by the Supreme Administrative Court's
ruling that PTT must transfer expropriated land and gas transmission pipelines
back to the state.
Fitch has a national long-term rating of 'AA+(tha)', national short-term
rating of 'F1+(tha)', and national senior unsecured debentures rated 'AA+(tha)'
for the company, with a stable outlook.
The court had ordered PTT to transfer expropriated land and the rights over
some private land properties (got by PTT during the corporatisation of Petroleum
Authority of Thailand into PTT) and gas transmission pipelines located on these
lands, worth about 15 bln Thai baht back to the state.
However, PTT will have the right to lease back and use the gas pipelines for
30 years, with an annual rental fee of at least 5 pct of gas pipeline revenues
(only from these parts).
Fitch expects the financial impact on PTT to be limited and sees no material
deterioration to its current strong financial profile.
It said PTT has substantial liquidity and solid operating cash flow to
withstand the 4 bln Thai baht one-time payment, and that the 200-300 mln Thai
baht annual rental fee should not significantly jeopardise its gas pipeline's
profitability.
TFN.newsdesk@thomson.com
apm/man
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