TRIS affirms Ratchthani Leasing ratings
TRIS Rating has affirmed the company rating of Ratchthani Leasing and the ratings of its existing senior unsecured debentures at “A-”.
At the same time, TRIS has assigned an “A-” rating to the listed company’s proposed issue of up to Bt3 billion in senior unsecured debentures.
The ratings reflect Ratchthani Leasing’s business profile, underpinned by sustained improvements in market position and financial performance.
They also reflect the extensive experience that the company’s management team has in financing used cars and commercial trucks, plus the continuous improvements it has made in its operating processes and risk management systems, the ratings firm said on Monday.
The ratings take into consideration the business support and financial support Ratchthani Leasing receives from its major shareholder, Thanachart Bank.
The ratings are enhanced from Ratchthani Leasing’s stand-alone rating because TRIS holds the view that the company is a strategically important subsidiary of Thanachart Bank.
However, the strengths are weighted down by concerns over intense competition, the quality of the leasing firm’s loan portfolio, and a heavy reliance on commercial-trucks loans.
These factors might affect profitability, TRIS cautioned.
