The corporate credit rating on PTT Exploration and Production Public Co. Ltd. (PTTEP) reflects the Thailand-based company's strategic importance to PTT Public Co. Ltd. (PTT; BBB+/Stable/--) and the government of Thailand (foreign currency BBB+/Stable/A-2; local currency A-/Stable/A-2; ASEAN scale axAA/axA-1). The rating also highlights the company's strong domestic position, solid asset base, and modest financial risk profile. The company's dependence on PTT for almost all its revenue, and its aggressive growth plans partly offset these strengths. PTTEP is also exposed to execution risk for the development of its substantial proven but undeveloped fields, and related heavy capital requirements. In our opinion, PTTEP's financial risk profile will weaken in 2011, with a ratio of adjusted total debt to EBITDA of more
