Moody’s Revises Outlook for PTT and PTTEP to Negative After Sovereign Outlook Adjustment

Singapore, April 30, 2025 – Moody’s Ratings has revised its ratings for PTT and PTTEP, two non-financial governement related corporations, following the affirmation of Thailand’s government issuer rating at Baa1 and a change in the outlook from stable to negative on April 29, 2025.

Key Points

• Moody’s Ratings has revised the outlooks for PTT and PTTEP from stable to negative following a similar adjustment in Thailand’s sovereign rating on April 29, 2025.
• Despite the revised outlook, Moody’s affirmed the Baa1 issuer ratings for both companies, including their senior unsecured bond ratings and Baseline Credit Assessments (BCA).
• The outlook could shift back to stable if Thailand’s sovereign rating outlook is revised to stable.
• Moody’s outlined factors that could lead to a downgrade, such as changes in Thailand’s ratings, weaker company financials, or government ownership changes.
• The credit ratings underscore PTT’s and PTTEP’s strategic importance to Thailand’s energy sector, but their ratings are constrained by investment appetite, exposure to oil price volatility, and other financial risks.

The two companies are government-related issuers (GRIs), and our rating actions are as follows: Moody’s Rating affirmed PTT Public Company Limited’s (PTT) Baa1 issuer and senior unsecured bond ratings, along with its baa2 Baseline Credit Assessment (BCA).

PTT Public Company Limited (PTT): We have affirmed PTT’s Baa1 issuer and senior unsecured bond ratings, as well as its baa2 Baseline Credit Assessment (BCA).

Moody’s Rating have also affirmed the Baa1 rating on the backed senior unsecured notes issued by PTT Treasury Center Company Limited (PTT TCC), a wholly-owned subsidiary of PTT; the Baa1 backed senior unsecured rating of PTT TCC’s bank credit facility; and the (P)Baa1 senior unsecured rating on the medium-term note (MTN) program established by PTT TCC and PTT. Any issuance under the MTN program by PTT TCC will be unconditionally and irrevocably guaranteed by PTT.

The rating outlooks were revised to negative from stable.

Rating outlooks changed from stable to negative

PTT Exploration and Production Public Co. Ltd. (PTTEP): We have affirmed PTTEP’s Baa1 issuer rating, its baa2 BCA and its (P)Baa1 senior unsecured medium-term note (MTN) program rating.

We have also affirmed PTTEP Treasury Center Company Limited’s (PTTEP TC) (P)Baa1 backed senior unsecured MTN program rating and Baa1 rating for its backed senior unsecured notes. The senior unsecured notes issued by PTTEP TC are fully and unconditionally guaranteed by PTTEP. PTTEP TC is a wholly-owned subsidiary of PTTEP.

Evaluation Justification

The change in outlook on PTT and PTTEP’s ratings to negative follows the change in outlook on Thailand’s sovereign rating. This reflects the national oil company and its upstream subsidiary’s strategically-important positions in Thailand given its critical role in the country’s energy sector.

PTT’s Baa1 issuer rating is largely based on its standalone credit strength, reflected by its baa2 Baseline Credit Assessment (BCA). This baa2 BCA underscores PTT’s strategic role as Thailand’s national integrated oil and gas company, its substantial upstream production, its control of approximately 60% of Thailand’s refining capacity, and its excellent liquidity. However, PTT’s BCA is limited by its aggressive growth ambitions, its less-than-majority stakes in several key subsidiaries, its vulnerability to the cyclical nature of oil prices and refining or petrochemical margins, and its exposure to changing regulatory risks.

PTTEP’s Baa1 ratings reflect its standalone credit strength, captured by its baa2 BCA. The baa2 BCA reflects the company’s strong financial metrics, excellent liquidity and financial flexibility, high cash flow visibility from its long-term gas sales contracts and relatively low cost of production. PTTEP’s BCA is constrained by its appetite for investments; modest hydrocarbon reserve life; smaller production scale than that of its global peers; and exposure to oil price cyclicality.