TRIS Rating Co., Ltd. has affirmed the company rating of SIAM A&C CO., LTD. at "BBB+". The rating is based on SIAM A&C's good system of credit risk and information management, the strong support it receives from its parent company and strategic partners, and its sound financial performance. The rating also takes into consideration the strong market demand in the retail finance business. However, the rating is constrained by rising competition amongst non-bank consumer finance operators and from some commercial banks, and by SIAM A&C's relatively low capital base, compared to its peers.
At the same time, TRIS Rating has also affirmed the rating of SIAM A&C's Bt2,000 million guaranteed debentures (SANC05DA) at "AA". The debentures are fully guaranteed by SIAM A&C's parent company, ACOM CO., LTD., a company rated "Baa1" and "BBB+" by Moody's and Standard & Poor's respectively. The issue rating is based on the credit quality of the guarantor, and the unconditional and irrevocable guarantee of the debentures. The Bt2,000 million debentures represent less than 1% of ACOM's non-consolidated shareholders' equity and will have negligible impact on ACOM's present long-term debt to equity ratio of 1.64.
TRIS Rating reported that strong financial and business support from ACOM and its local strategic partners are crucial for Siam A&C's future market position and sustainable growth. All of them have great experience and are market leaders in their core businesses. ACOM is the largest non-bank consumer finance company in Japan, the leader in automated financing operations, and provides a nationwide network as well as tie-ups with strategic alliances in related businesses.
SIAM A&C's business has taken off significantly over the last three years. Although the credit card business was not launched in 2003 as originally planned, the company was able to keep its overall performance on track with its projection. There is a strong link between SIAM A&C and ACOM, and SIAM A&C can look forward to full support from ACOM in the foreseeable future.
TRIS Rating said, ACOM's rating is supported by its strong market position as the largest consumer finance company in Japan, its ample capital base and high profitability, its sound and experienced management team and its strong operating franchise in the consumer finance business. These strengths are partially offset by saturation in the Japanese consumer finance market, in line with the country's protracted economic slump, and deterioration in asset quality. In addition, the competitive environment and narrower spreads negatively affect the performance of consumer finance companies.
As of June 2003, SIAM A&C's assets represented only 0.1% of ACOM's total assets, while its loan receivables accounted for about 0.4% of ACOM's. SIAM A&C is ACOM's first overseas subsidiary in Southeast Asia, and figures significantly in ACOM's strategy to be a major regional player in the consumer finance industry, TRIS Rating said. -- End
SIAM A&C CO., LTD.Company Rating: Affirmed at BBB+Issue Rating:SANC05DA: Bt2,000 million guaranteed debentures due 2005 Affirmed at AA
At the same time, TRIS Rating has also affirmed the rating of SIAM A&C's Bt2,000 million guaranteed debentures (SANC05DA) at "AA". The debentures are fully guaranteed by SIAM A&C's parent company, ACOM CO., LTD., a company rated "Baa1" and "BBB+" by Moody's and Standard & Poor's respectively. The issue rating is based on the credit quality of the guarantor, and the unconditional and irrevocable guarantee of the debentures. The Bt2,000 million debentures represent less than 1% of ACOM's non-consolidated shareholders' equity and will have negligible impact on ACOM's present long-term debt to equity ratio of 1.64.
TRIS Rating reported that strong financial and business support from ACOM and its local strategic partners are crucial for Siam A&C's future market position and sustainable growth. All of them have great experience and are market leaders in their core businesses. ACOM is the largest non-bank consumer finance company in Japan, the leader in automated financing operations, and provides a nationwide network as well as tie-ups with strategic alliances in related businesses.
SIAM A&C's business has taken off significantly over the last three years. Although the credit card business was not launched in 2003 as originally planned, the company was able to keep its overall performance on track with its projection. There is a strong link between SIAM A&C and ACOM, and SIAM A&C can look forward to full support from ACOM in the foreseeable future.
TRIS Rating said, ACOM's rating is supported by its strong market position as the largest consumer finance company in Japan, its ample capital base and high profitability, its sound and experienced management team and its strong operating franchise in the consumer finance business. These strengths are partially offset by saturation in the Japanese consumer finance market, in line with the country's protracted economic slump, and deterioration in asset quality. In addition, the competitive environment and narrower spreads negatively affect the performance of consumer finance companies.
As of June 2003, SIAM A&C's assets represented only 0.1% of ACOM's total assets, while its loan receivables accounted for about 0.4% of ACOM's. SIAM A&C is ACOM's first overseas subsidiary in Southeast Asia, and figures significantly in ACOM's strategy to be a major regional player in the consumer finance industry, TRIS Rating said. -- End
SIAM A&C CO., LTD.Company Rating: Affirmed at BBB+Issue Rating:SANC05DA: Bt2,000 million guaranteed debentures due 2005 Affirmed at AA