The rating on Thai Oil Public Co. Ltd. (Thaioil) reflects the support the company continues to receive from its operational integration with and strategic importance to state-owned oil and gas conglomerate PTT Public Co. Ltd. (BBB+/Stable/--). The rating also reflects Thaioil's favorable cost structure, flexibility in feedstock selection, and strong domestic market position. Thaioil's single-site and customer-concentration risks, the inherent industry risks, and the uncertain outlook for the refinery and aromatics industries partially offset its strengths. Thaioil's business risk profile is "satisfactory," as defined in our criteria. The company's low cash costs allow it to continue operating at full capacity despite weaker gross refining margins. The group's integrated cash costs remain low at US$1.70 per barrel as of June 30,
