Bangkok--Feb 12--TRIS
Thai Rating and Information Services (TRIS) cancelled Friday 12 February 1999 that it had affirmed the rating of Italian-Thai Development PLC's (ITD) 3,500-million-baht senior debentures at "BBB" The rating reflects ITD's strong business position in the construction industry but it is offset by the company's rather weak financial profile with high leverage from massive foreign borrowing and exposure to foreign currency risk. The rating is removed from CreditAlert, Where it was placed in December 1997.
The construction industry plunged 22% in 1998. It is beginning to show signs of recovery since the government plans to increase infrastructure spending. However, Thailand is still prone to the uncertainties of external economic factors. ITD has established a strong business relationship with government agencies and has undertaken strategic alliances with potential customers. It has developed its construction competence based on accurate costing and efficient project management. ITD maintains a relatively high level of work in progress by focusing on huge infrastructure projects with high economic importance. In October 1998, its backlog was valued 51,322 million baht, or about 2.1 times its construction revenue in 1997.
As of September 1998 ITD's account receivables and unbilled receivables remained high at 8,537 million baht. Total debts amounted to 17,649 million baht with a total debt to capitalization ratio of 69.6%. Its overall profitability has improved by completing several major projects. Pretax interest coverage was at 3.1 times. Operating income accounted for 15.6% of revenues. Pretax return on permanent capital for the first nine months of 1998 increased to 16.9%, and funds from operations convered 19% of total debts. ITD's high level of debt service burden,
particularly short-term debts, pressures its financial position. Foreign currency exposure remains a concern, although expected foreign income can be a partial hedge to its foreign debts. ITD is seeking debt restructuring with its local and offshore lenders. Note: Italian-Thai Development PLC (ITD) TRIS's rating
ITD#1: 3,500 mb or debs due 2005 Affirmed at BBB End.
Thai Rating and Information Services (TRIS) cancelled Friday 12 February 1999 that it had affirmed the rating of Italian-Thai Development PLC's (ITD) 3,500-million-baht senior debentures at "BBB" The rating reflects ITD's strong business position in the construction industry but it is offset by the company's rather weak financial profile with high leverage from massive foreign borrowing and exposure to foreign currency risk. The rating is removed from CreditAlert, Where it was placed in December 1997.
The construction industry plunged 22% in 1998. It is beginning to show signs of recovery since the government plans to increase infrastructure spending. However, Thailand is still prone to the uncertainties of external economic factors. ITD has established a strong business relationship with government agencies and has undertaken strategic alliances with potential customers. It has developed its construction competence based on accurate costing and efficient project management. ITD maintains a relatively high level of work in progress by focusing on huge infrastructure projects with high economic importance. In October 1998, its backlog was valued 51,322 million baht, or about 2.1 times its construction revenue in 1997.
As of September 1998 ITD's account receivables and unbilled receivables remained high at 8,537 million baht. Total debts amounted to 17,649 million baht with a total debt to capitalization ratio of 69.6%. Its overall profitability has improved by completing several major projects. Pretax interest coverage was at 3.1 times. Operating income accounted for 15.6% of revenues. Pretax return on permanent capital for the first nine months of 1998 increased to 16.9%, and funds from operations convered 19% of total debts. ITD's high level of debt service burden,
particularly short-term debts, pressures its financial position. Foreign currency exposure remains a concern, although expected foreign income can be a partial hedge to its foreign debts. ITD is seeking debt restructuring with its local and offshore lenders. Note: Italian-Thai Development PLC (ITD) TRIS's rating
ITD#1: 3,500 mb or debs due 2005 Affirmed at BBB End.