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The ratings on PTT reflect the strategic importance of the company to the government's energy policy and the steady demand growth prospects for energy in Thailand, the rating company said.

 The ratings on PTTEP reflect Standard and Poor's expectations that PTTEP will maintain its strong domestic position and strategic importance to PTT in the medium to long term. The ratings on PTTEP also take into account its strategic position as a key supplier of gas to Thailand's power sector through the Electricity Generating Authority of Thailand.

 "The ratings on PTT and PTTEP are strongly linked to the sovereign ratings on the Kingdom of Thailand (foreign currency BBB+/Stable/A-2; local currency A/Stable/A-1) as the government has direct majority ownership or considerable influence in these entities," it said.

 The ratings on PTT Chemical, Thaioil, and ATC reflect Standard and Poor's expectations that these companies will maintain their leadership position in the domestic market, cost efficient production, and operational integration with PTT.

 The outlook on ATC already factored in immediate capital expenditure savings in the ARO II project when the proposed merger of ATC with Rayong Refinery Plc was announced on July 20.

 Standard and Poor's will assess the combined entities' position as an integrated refinery and petrochemical player and any increase in potential support from PTT. In line with the strong strategic support from and integration with PTT, the ratings on PTT Chemical, Thaioil, and ATC remain sensitive to the sovereign rating and outlook on Thailand.

 The followings are the five companies' ratings.

 --PTT (foreign currency BBB+/Stable/--; local currency A-/Stable/--)

 -- PTT Exploration and Production Public (foreign currency BBB+/Stable/--; local currency BBB+/Stable/--)

 --PTT Chemical (foreign currency BBB/Stable/--; local currency BBB/Stable/--)

 --Thai Oil (foreign currency BBB/Stable/--; local currency BBB/Stable/--)

 --Aromatics (Thailand) (foreign currency BBB/Stable/--; local currency BBB/Stable/--)

The Nation