Bangkok--Sep 17--TRIS
Thai Rating and Information Services (TRIS) announced in a "CreditUpdate" on Thursday 17 September 1998 that it affirms the ratings of Tipco Asphalt PLC's (TASCO) 500 million baht senior debentures and 1,300 million baht convertible debentures at BBB-. TRIS also removed them from CreditAlert, where they were placed on 28 March 1998 due to a significant increase in TASCO's debt burden because of the baht depreciation, causing it to breach covenants of its debentures.
TRIS said that holders of TASCO's 500-million-baht senior debentures and 1,300-million-baht convertible debentures have agreed to abide the company's failure to comply with its covenants in 1997 and have allowed amendments to both debentures' covenants for the residual period. Holders of the 500-million-baht debentures have agreed to change the covenants of maintaining debt to equity ratio at not more than 2 to 1 to not more than 5 to 1and total unpledged assets to total unsecured liabilities ratio at not less than 1.25 times to not less than 1.15 timesat the end of each quarter of 1998.
Under the amended covenants of the 1,300-million-baht convertible debentures, TASCO has to maintain its debt to equity ratio at not more than 5 to 1 and interest coverage ratio to not less than 1.1 times at the end of each quarter of 1998. Going forward, on a yearly basis, the company has to improve its debt to equity ratios to not more than 4 to 1 in 1999 and 3.5 to 1 in 2000, and improve interest coverage ratios to not less than 1.5 and 1.75 times as of the end of every quarter of 1999 and 2000, respectively. In addition, the company is required to maintain its total unpledged assets to total unsecured liabilities ratio at not less than 1.15 times at the end of every quarter during the residual period.
As of June 1998 TASCO's financial ratios conformed to the changed covenants. Debt to equity ratio was at 3.14 to 1 and interest coverage ratio was at 4.6 times. Total unpledged assets to total unsecured liabilities ratio was acceptable at 1.32 time. TRIS will closely monitor the company's rating regarding developments on its financial profile.
Note: "CreditUpdate" reviews ratings of companies or debt issues that have already been rated by TRIS. The CreditUpdate occurs when new debt instruments are issued or if significant events have taken place that may impact a company's current ratings or when current ratings are cancelled. The update includes information to supplement the previously published ratings. End.
Thai Rating and Information Services (TRIS) announced in a "CreditUpdate" on Thursday 17 September 1998 that it affirms the ratings of Tipco Asphalt PLC's (TASCO) 500 million baht senior debentures and 1,300 million baht convertible debentures at BBB-. TRIS also removed them from CreditAlert, where they were placed on 28 March 1998 due to a significant increase in TASCO's debt burden because of the baht depreciation, causing it to breach covenants of its debentures.
TRIS said that holders of TASCO's 500-million-baht senior debentures and 1,300-million-baht convertible debentures have agreed to abide the company's failure to comply with its covenants in 1997 and have allowed amendments to both debentures' covenants for the residual period. Holders of the 500-million-baht debentures have agreed to change the covenants of maintaining debt to equity ratio at not more than 2 to 1 to not more than 5 to 1and total unpledged assets to total unsecured liabilities ratio at not less than 1.25 times to not less than 1.15 timesat the end of each quarter of 1998.
Under the amended covenants of the 1,300-million-baht convertible debentures, TASCO has to maintain its debt to equity ratio at not more than 5 to 1 and interest coverage ratio to not less than 1.1 times at the end of each quarter of 1998. Going forward, on a yearly basis, the company has to improve its debt to equity ratios to not more than 4 to 1 in 1999 and 3.5 to 1 in 2000, and improve interest coverage ratios to not less than 1.5 and 1.75 times as of the end of every quarter of 1999 and 2000, respectively. In addition, the company is required to maintain its total unpledged assets to total unsecured liabilities ratio at not less than 1.15 times at the end of every quarter during the residual period.
As of June 1998 TASCO's financial ratios conformed to the changed covenants. Debt to equity ratio was at 3.14 to 1 and interest coverage ratio was at 4.6 times. Total unpledged assets to total unsecured liabilities ratio was acceptable at 1.32 time. TRIS will closely monitor the company's rating regarding developments on its financial profile.
Note: "CreditUpdate" reviews ratings of companies or debt issues that have already been rated by TRIS. The CreditUpdate occurs when new debt instruments are issued or if significant events have taken place that may impact a company's current ratings or when current ratings are cancelled. The update includes information to supplement the previously published ratings. End.