Our 'BBB' long-term corporate credit rating on Thai Oil Public Co. Ltd. (Thaioil) is derived from: Thaioil's 'bbb-' anchor, which is based on our assessment that the company's business risk profile is "satisfactory" and its financial risk profile is "intermediate". Thaioil's 'bbb-' stand-alone credit profile (SACP) with a neutral effect from modifiers. Thaioil's "highly strategic" status for the PTT group; accordingly the issuer credit rating is generally one-notch below the 'bbb+' group credit profile. Strong domestic market position as the largest refinery in Thailand. Favorable product mix and relatively low costs. Operational integration with, and strategic importance to, PTT group. Cyclical, commoditized, and capital-intensive industry conditions. Concentration in Thailand. Single-site risk. Moderate leverage. Robust cash flow generation capacity. Expected negative
