Fitch Ratings (Thailand) has affirmed the National Long-Term Rating on Thai ORIX Leasing Company Limited's (TOLC) Thai baht-denominated guaranteed bonds at 'AAA(tha)' with a Stable Outlook.
KEY RATING DRIVERS
The National Long-Term Rating on TOLC's guaranteed bonds are based entirely on irrevocable and unconditional guarantees provided by its parent company, Japan-based ORIX Corporation (ORIX: A-/Stable). ORIX's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'A-' is higher than Thailand's Long-Term Local-Currency IDR of 'BBB+', and corresponds to the highest rating on Thailand's National Rating scale of 'AAA(tha)'.
TOLC is 96.6% owned by ORIX, the largest diversified financial-service company in Japan in terms of total assets (JPY14.3 trillion at end-March 2022) with a strong franchise in its local market. The remaining 3.4% stake is owned by Bangkok Insurance Public Company Limited. TOLC has more than 40 years' presence in Thailand and offers a wide range of leasing products, including finance and auto-operating leases, hire purchase and rental of equipment and machines.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Fitch could downgrade the ratings on TOLC's guaranteed bonds if ORIX's Long-Term Foreign-Currency IDR were to be below Thailand's Long-Term Local-Currency IDR, either through a downgrade of ORIX's rating or an upgrade of the Thai sovereign rating.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
There is no rating upside as the 'AAA(tha)' rating on TOLC's guaranteed bonds are at the highest level on the national scale.
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.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
The ratings on TOLC's guaranteed bonds are linked to ORIX's Long-Term Foreign-Currency IDR.
Additional information is available on www.fitchratings.com