The ratings on Thai Oil Public Co. Ltd. (Thaioil) are supported by the following strengths: Operational integration with and strategic importance to state-owned oil and gas conglomerate PTT Public Co. Ltd. (PTT; foreign currency BBB+/Negative/--; local currency BBB+/Negative/--). PTT has a 49.1% stake in Thaioil and is PTT's flagship refinery. Thaioil and PTT have a product off-take and crude oil supply agreement (POCSA), under which Thaioil procures about 50% of its crude oil through PTT and PTT purchases a minimum 49.99% of Thaioil's refining capacity, subject to certain conditions. We expect PTT to continue to provide support to Thaioil, when required, to ensure Thaioil's continued efficient operations. Favorable cost structure and flexibility in feedstock selection. Thaioil's favorable cost position is
