The 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; axAA/axA-1). The rating also reflects PTTEP's strong domestic position and solid profitability and cash flow-generating capability. We assess the company's business risk profile as "satisfactory". 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. PTTEP's financial risk profile is "modest," in our opinion. The company's financial performance in 2011 was better than our
