We expect Thailand-based oil and gas producer PTTEP to remain a core subsidiary of parent company PTT over the next two years. We therefore equate the corporate credit rating on PTTEP and the rating on the company's senior notes with the ratings on PTT. However, we believe PTTEP will face ongoing challenges to sustainably replenish the reserve life of its hydrocarbon assets over the next few years following steady depletion of reserves since 2010. We also anticipate that the company's reserves will stay at the weaker end of the proven reserve profile of rated global peers with a comparable business profile. We are therefore lowering our assessment of PTTEP's SACP to 'bbb' from 'bbb+'. We are affirming our 'BBB+' long-term
