Although the industry outlook remains weak, we believe Thaioil's lower cash costs and flexibility in feedstock selection will provide adequate protection during the cyclical downturn. We believe Thaioil's financial risk profile will improve due to adequate free operating cash flow generation as a result of lower capital expenditures. We have affirmed the 'BBB' corporate credit rating and issue rating on Thaioil. The outlook on the corporate credit rating remains negative, in line with the parent. On Aug. 23, 2010, Standard&Poor's Ratings Services affirmed its 'BBB' long-term corporate credit rating on Thai Oil Public Co. Ltd. (Thaioil). The outlook is negative. At the same time, we also affirmed the 'BBB' issue rating on the company's US$350 million senior unsecured
