TRIS Rating affirms the company rating on Esso (Thailand) Public Company Limited (SET: ESSO) at A with a stable rating outlook. The rating reflects ESSO’s strong relationship with Exxon Mobil Corporation and affiliates (ExxonMobil Group), its efficient integrated refinery, and strong brand awareness. Conversely, the rating is constrained by uncertainty in the oil market, its susceptibility to volatile oil prices, and severe competition in the retail business.
The company rating on ESSO incorporates a three-notch uplift from its stand-alone credit profile (SACP) of bbb. We view ESSO is strategically important to Exxon Mobil Corporation (rated “AA-/Negative” by S&P Global Ratings). The uplift reflects our expectation of a strong parental support in a distressed scenario.