The ratings on PTT Exploration and Production Public Co. Ltd. (PTTEP) reflect its solid asset base, competitive position in Thailand's oil and gas industry, and attractive medium-to long-term domestic consumption growth prospects for natural gas. Offsetting these positive characteristics are the company's dependence on domestic gas sales for its revenues, a single customer and market for its sales, as well as its moderately aggressive financial profile. PTTEP's ratings are also enhanced by the company's key public policy role and close operational ties to the government of Thailand (local currency rating A-/Stable/A-2, foreign currency rating BBB-/Stable/A-3). The company is 61% owned by state-owned Petroleum Authority of Thailand (PTT), which, over the past few years, has reduced its stake in stages as
