TRIS Rating Downgrades Guaranteed Debt Rating of “LVMCS” to “BB ” from

TRIS Rating downgrades the rating of US$25.7 million guaranteed debentures issued by LVMC Holdings Singapore Pte. Ltd. (LVMCS) to “BB+” from “BBB-”. LVMCS is previously known as Kolao Holdings Singapore Pte. Ltd. (KHS). The rating change reflects the downgrade of the company rating of LVMC Holdings (LVMC, the Group), one of the guarantors. The debentures are jointly and severally guaranteed by LVMC and Kolao Developing Co., Ltd. (KDC). Therefore, the issue rating reflects the credit worthiness of LVMC and KDC.

TRIS Rating downgrades the company rating of LVMC, previously known as Kolao Holdings (KOLAO), to “BB+”, from “BBB-“. The rating downgrade reflects a larger-than-expected drop in the operating performance of LVMC. KDC, a wholly-owned subsidiary of LVMC, is classified as a “core” subsidiary of LVMC. Thus, KDC’s rating is equivalent to LVMC’s rating, or the Group’s rating.

Under the guarantee agreement, LVMC and KDC jointly and severally provide unconditional and irrevocable guarantee on all amounts due under the debentures, including the principal amount of US$25.7 million and any interest accrued thereon and other related expenses. The guaranteed debentures rank at least equally with all other unsecured and unsubordinated obligations of LVMC and KDC.

LVMCS was incorporated in 2013 as a wholly-owned subsidiary of LVMC. LVMCS, through its subsidiaries, sells automobiles in Myanmar. As LVMCS’s business is currently small, the sources of interest and principal repayments to the debenture holders will come from the interest and principal repayments received from LVMC under the inter-company loan agreement between LVMCS and LVMC.

RATING OUTLOOK

The “stable” outlook reflects the outlook of LVMC and KDC. TRIS Rating expects the Group will be able to regain its competitiveness in its core market and restore profitability gradually. In addition, revenue from other countries should help boost the operating performance of the Group.

RATING SENSITIVITIES

The issue rating and/or outlook could be changed if the ratings and/or outlooks of the two guarantors change.

LVMC Holdings Singapore Pte. Ltd. (LVMCS)

Issue Rating:

KHS208A: US$25.7 million guaranteed debentures due 2020 BB+

Rating Outlook: Stable

TRIS Rating Co., Ltd./www.trisrating.com

Contact: santaya@trisrating.com, Tel: 0-2098-3000/Silom Complex Building, 24th Floor, 191 Silom Road, Bangkok 10500, Thailand

? Copyright 2018, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution, or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited, without the prior written permission of TRIS Rating Co., Ltd. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information. All methodologies used can be found at

http://www.trisrating.com/en/rating_information/rating_criteria.html

TRIS Rating Downgrades Guaranteed Debt Rating of “LVMCS” to “BB+” from “BBB-”, with “Stable” Outlook