Bangkok--8 Oct--Moody's Investors Service Moody's Investors Service has placed theissuer and senior unsecured ratings of Aromatics Thailand Public CompanyLtd (ATC) on review for possible upgrade. The rating action is inresponse to the proposed merger between ATC and Rayong Refinery PublicCompany Ltd (RRC). The debt securities affected by this rating action are: Senior Unsecured Notes - $300 million (5.5% p.a.) due 20 July, 2012 "The merger of ATC and RRC will create a stronger company with enhancedbusiness and financial profiles", says Terry Fanous, Senior VicePresident. "The merged entity will benefit from significant verticalintegration through the ownership of a substantial and efficient oilrefinery", Fanous adds. "The merger will also provide crucial earning diversity, particularlygiven the strength of the refining sector overall", Fanous says, adding"such diversity should lessen the volatility that had characterized ATC'searnings in recent years". Furthermore, the decision to place the rating on review for upgradereflects Moody's expectation that financial leverage and debt coveragemeasures of the merged entity will be stronger than that of ATC,reflecting RRC's strong balance sheet. The review will focus on the ultimate capital structure of the mergedentity, any synergy benefits likely to be derived from the proposedmerger, and the capital investment program and financial policy of themerged group. ATC's rating incorporates the joint default analysis (JDA) being appliedto government related entities. The review will consider the level ofsupport from PTT Public Company Ltd (the support provider under JDA),which is currently assessed as medium. Moody's expects to conclude the review following registration of themerged company, currently scheduled for the end of December, 2007. ATC, based in Thailand, is a petrochemicals company involved in theproduction of benzene, paraxylene, orthoxylene, and mixed xylenes, withan overall production capacity of 1.19 million tones per annum. Listed onThailand's stock exchange, ATC is 49.1% owned by PTT. RRC owns a single complex refinery in Thailand's Rayong Province. It hasa production capacity of 145,000 barrel per day (bpd). The company islisted on Thailand's stock exchange and is 48.7% owned by PTT. Sydney Terry Fanous Senior Vice President Corporate Finance Group Moody's Investors Service Pty Ltd JOURNALISTS: (612) 9270-8102 SUBSCRIBERS: (612) 9270-8100