PTT Exploration and Production Public Co. Ltd. (PTTEP) possesses high, noninvestment-grade credit quality on a stand-alone basis, which reflects the company's solid asset base and competitive position in the oil and gas industry. PTTEP's key public policy role and close operational ties to the government of Thailand (BBB-/Stable/A-3) also enhance this credit quality. Offsetting these positive characteristics, however, are the company's dependence on domestic gas sales for its revenues, a single customer for its sales, and one field for a significant portion of its production, as well as its moderately aggressive financial profile. PTTEP is 61% owned by state-owned Petroleum Authority of Thailand (PTT), which, over the past few years, has reduced its stake in stages as part of a
