briefs

Thailand and South Korea signed an initial agreement to cooperate in the nuclear-power sector, including development of atomic power plants, according to a statement yesterday by South Korea’s Ministry of Foreign Affairs and Trade. – Bloomberg

 

THAI kicks off freighter service

Thai Airways International will begin providing air-cargo and commercial mail service on its Boeing 747-400 freighter aircraft tomorrow. This service is meant to strengthen the quality of the company’s air-cargo services operated to and from Asia, Europe and Australia. 

Pichai Chunganuwad, managing director of the cargo and commercial mail department, said the retrofit of THAI’s two 747-400s into freighters was conducted by Boeing. THAI’s freighter aircraft are equipped to carry 100 tonnes of cargo per flight. – The Nation

 

SVI’s post-flood risks lower: Fitch

Fitch Ratings (Thailand) has affirmed SVI’s national long-term rating at “BBB+(tha)” and its national short-term rating at “F2(tha)”. The ratings have been removed from rating watch negative. The outlook is stable. 

The rating action reflects Fitch’s view that risks of a loss of major customers due to the flooding in the fourth quarter of last year have now eased and that the electronics manufacturing service provider is, therefore, likely to maintain its business and financial profile commensurate with the current ratings in the medium term.

As of last month, the vast majority of SVI’s customers remained committed to their product-manufacturing contracts with the company, because of the long-standing relationship and reputation SVI has with them. Only one client, which contributed about 5 per cent of total revenue before the floods, withdrew its order in consequence of that disaster. – The Nation

 

Finansa’s long-term rating downgraded

Fitch Ratings has downgraded Finansa’s national long-term rating to “BBB(tha)” from “BBB(tha)”. The outlook is negative. At the same time, the agency affirmed its national short-term rating at “F3(tha)”. 

The downgrade reflects FNS’s increased leverage, deteriorating liquidity position and funding profile that remains weak because of reliance on short-term funding to finance long-term assets. Fitch notes that the company’s short-term liquidity profile is particularly weak. 

The downgrade also factors in prolonged weak performance of its subsidiaries that has reduced FNS’s capital. The negative outlook reflects Fitch’s expectation that profitability will remain low and volatile over the medium term. – The Nation

 

Cove trading up after Mozambique move

Cove Energy, a British oil and gas explorer that offered itself for sale in January, rose the most in six weeks in London trading after the Mozambican government clarified taxes applicable in the event of a deal. PTT Exploration and Production bid £1.1 billion  (Bt54 billion) for Cove in February, topping an offer from Royal Dutch Shell. Cove shares had dropped by about 10 per cent since Mozambican Mineral Resources Minister Esperanca Bias said on March 1 that the company would face a tax if it were sold.  – Bloomberg