Operational integration with, and strategic importance to, PTT Public Co. Ltd.; Favorable cost structure and flexibility in feedstock selection; and Strong domestic market position. Single site and customer concentration risks; Inherent industry risk coupled with limited vertical integration; and Challenging outlook for the refinery and petrochemical business. 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
