Bangkok--14 Aug--Fitch Ratings
Fitch Ratings (Thailand) has today assigned Easy Buy Public Company Limited's (EB; 'AA(tha)'/Stable) senior unsecured bonds a National Long-Term Rating of 'AA(tha)'.
The bonds will have maturities of up to five years, and total issue size will be up to THB2bn. The proceeds from the issue will be used for general corporate purposes and refinancing.
KEY RATING DRIVERS
The bonds are rated at the same level as EB's National Long-Term Rating of 'AA(tha)', in accordance with Fitch's criteria.
EB's National Ratings reflect Fitch's expectation of a high probability of institutional support from its Japanese parent ACOM Co., LTD. (ACOM; A-/Stable).
Fitch believes EB is a strategically important subsidiary of ACOM, as reflected in ACOM's 71% majority ownership and full management control. There is also clear evidence of both ongoing and previous financial and operational support, such as debt guarantees and direct lending as well as the transfer of technical knowledge. EB is also ACOM's largest overseas subsidiary, with the highest revenue contribution.
RATING SENSITIVITIES
Any change in EB's National Long-Term Rating would have a similar effect on the bonds' rating.
Any change in ACOM's ratings could have a similar effect on EB's National Long-Term Rating. Any indications of a weaker propensity for ACOM to provide support to EB could result in a downgrade of the National Ratings. For example, this may be indicated by a significant reduction in ACOM's ownership or level of commitment to provide financial support.
EB's other ratings are not affected, and are as follow:
National Long-Term Rating at 'AA(tha)'; Outlook Stable
National Short-Term Rating at 'F1+(tha)'
National Long-Term Rating of outstanding senior unsecured bonds at 'AA(tha)'
National Long-Term Rating of outstanding guarantee bonds at 'AAA(tha)'