MOODY’S ON THAI OIL Ratings reflect strength of largest refiner
Moody's Investors Service has completed a periodic review of the ratings of Thai Oil Plc at Baa1, reflecting its strong market position as the largest and most complex refiner in Thailand, its long-term crude feedstock supply and product off-take agreements with its parent PTT Plc (PTT, Baa1 stable), strong liquidity buffer with a large cash balance and good credit metrics.
At the same time, the company is exposed to execution risk related to its refinery expansion plan, volatility in earnings given the cyclical nature of oil prices and product margins and single-site concentration risk.
