TRIS Rating has raised the company rating of Nation Multimedia Group PLC (NMG) to “B+” from “D” with “negative” outlook. The rating upgrade comes after NMG paid its overdue bills of exchange (B/E) worth Bt200 million in total. The "B+" rating with negative outlook continues to reflect TRIS Rating's concern over the refinancing risk NMG still faces. NMG has Bt360 million in outstanding bills of exchange coming due in mid- to late-January. In addition, conflicts that may arise between NMG's two main shareholder groups remain a rating concern.
On 30 November 2016, the Ministry of Commerce officially registered a new board of directors for NMG, removing the management vacuum under which it had been operating. NMG then proceeded to refinance its overdue debts. Currently, NMG has outstanding bills of exchange worth Bt550 million. The B/Es mature in series, with maturity dates of less than one month to three months. The company is working on ways to meet its financial obligations.
The rating could be downgraded to “D” if NMG misses a repayment. However, NMG's solid plan to ease its liquidity problem e.g. arranging committed financing facility or recapitalization will be positive factors for the rating.
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