TRIS affirms Sub Sri Thai credit rating
TRIS Rating has affirmed the company rating of Sub Sri Thai (SST) at “BBB-” with a “stable” outlook.
The rating reflects the listed company’s position in the chain restaurant and quick-service restaurant (QSR) market segment and its stable track record in the warehouse and document storage market, the ratings firm said on Tuesday.
The rating takes into consideration the growth prospects of its restaurant and QSR segment. These strengths are partially constrained by SST’s earnings-growth challenge amid intense competition, a sluggish economy which limits consumer spending, and looming capital expenditures, TRIS said.
The “stable” outlook reflects TRIS’s expectation that SST will maintain its market positions in its key lines of business and keep improving operating performance.
The credit rating could be revised upward if the operating performance and ability to generate cash flow improve substantially, with a sound balance sheet.
The rating’s downside case would be triggered by weaker-than-expected operating performance for a prolonged period of time or aggressive debt-funded investments, TRIS added.
