Fitch Ratings (Thailand) has assigned a National Long-Term Rating of 'A(tha)' to Asia Plus Group Holding Public Company Limited's (ASP, A(tha)/Stable) upcoming issue of up to THB2.0 billion in senior unsecured notes with maturity of two years. The company plans to use the proceeds for debt repayment and working capital.
KEY RATING DRIVERS
The senior unsecured notes are rated at the same level as ASP's National Long-Term Rating, as they represent its unsecured and unsubordinated obligations.
ASP's ratings reflect a well-established securities franchise and diversified business model relative to domestic rated peers. The ratings also reflect ASP's steady financial performance, and acceptable capital and liquidity buffers. Fitch believes ASP's competitive advantages will enable the company to navigate industry challenges and cyclical downturns over the medium term.
For details on ASP's key rating drivers and sensitivities, see "Fitch Affirms Asia Plus Group Holdings at 'A(tha)'; Outlook Stable", published on 10 January 2022.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Any upgrade in ASP's National Long-Term Rating would lead to similar action on the rating of the senior unsecured notes - although there is limited upside in the near term, as ASP's ratings are already high relative to the universe of Fitch-rated standalone Thai securities firms.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Negative action on ASP's National Long-Term Rating would result in similar action on its senior debt rating.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
Additional information is available on www.fitchratings.com