Fitch Ratings (Thailand) has assigned a National Long-Term Rating of 'A(tha)' to Asia Sermkij Leasing Public Company Limited's (ASK; A(tha)/Stable) upcoming issue of senior unsecured debentures. The company plans to use the proceeds for debt repayment and working capital.
KEY RATING DRIVERS
The senior unsecured debentures are rated at the same level as ASK's National Long-Term Rating, as they represent the company's unsecured and unsubordinated obligations.
ASK's ratings reflect Fitch's assessment of extraordinary support from the ultimate controlling shareholder, Taiwan-based Chailease Holding Company Limited (BBB-/Stable). ASK is a strategically important subsidiary of Chailease and has an important role in supporting Chailease's expansion in south-east Asia. ASK's ratings also reflect a strong record of support in terms of capital, operations, and risk management expertise.
See Fitch Assigns Asia Sermkij Leasing First-Time 'A(tha)' National Long-Term Rating; Outlook Stable dated 18 August 2022 for details on ASK's key rating drivers and sensitivities.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
The rating on the senior unsecured debentures would be downgraded if ASK's National Long-Term Rating is downgraded. This may occur if there were any declines in Chailease's ability or propensity to support ASK, while also taking into account ASK's relative credit profile within the Thai national rating scale.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
An upgrade in ASK's National Long-Term Rating would have a similar effect on the rating of the senior unsecured debentures. For example, there could be rating upside if there is positive action on Chailease's Long-Term Issuer Default Rating (IDR), or if Fitch positively re-assesses ASK's strategic importance to the parent.
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
ASK's National Ratings are linked to Chailease's credit profile, as denoted by its Long-Term IDR.
Additional information is available on www.fitchratings.com