Company Name Company Rating Issue Rating Rating Outlook
CORPORATE
1. Advanced Info Service PLC (ADVANC) AA AA Stable
Rationale: The stable outlook is based on ADVANC's solid position as Thailand's leading mobile phone operator, with a very large customer base and high brand recognition. High cash flow generation and acceptable financial leverage provide flexibility to cope with possibility of a changing regulatory environment and the need for large investments in technology. However, ADVANC needs to be cautious in paying dividends to shareholders as it may require more funds to acquire new technology.
2. Aeronautical Radio of Thailand Ltd. (AEROTHAI) AA - Stable
Rationale: The stable outlook for AEROTHAI's rating is supported by implicit support from the government as the company is the only operator to manage air traffic control activity, which is a crucial function for air transportation.
3. Asia Multimedia Co., Ltd. (AM) BBB - Stable
Rationale: The stable outlook reflects AM's stable cash flow generation and favorable growth prospects for the data communication business. The stable outlook is also based on the assumption that its parent will not transfer any debts or obligations to the company in the future.
4. Banpu PLC (BANPU) A A Stable
Rationale: The stable outlook reflects the expectation that BANPU's operational performance will remain solid. Its sales performance and profitability is expected to be in line with its targets, supported by favourable coal prices. The company's capital expenditures are expected to be prudently managed to maintain its good financial position.
5. Central Pattana PLC (CPN) A- A- Positive
Rationale: CPN's positive outlook reflects the company's ability to enlarge its market position in the retail property industry after successfully expanding through new projects and redeveloping existing projects that have been re-branded to CPN. The ratings should be upgraded if the company can strengthen its market position without weakening its financial profile.
6. Charoen Pokphand Foods PLC (CPF) A A Stable
Rationale: The stable outlook reflects expectations that CPF will continue to maintain its leading position in the Thai agribusiness industry. The emphasis on processed chicken meant its exports have been less affected by concerns over the bird flu epidemic. The recovery in domestic livestock prices should support the gradual improvement in its 2004 operating performance.
7. Eastern Water Resources Development and Management PLC (EASTW) A+ A+ Stable
Rationale: The stable outlook reflects EASTW's ability to sustain stable cash flow generation due to high barriers to entry into its core raw water business and the de facto monopoly status of the company. TRIS Rating expects that the company will cautiously invest in large projects only after extensive studying.
8. Glow SPP PLC (GLOW SPP) A- A- Stable
Rationale: The stable outlook reflects GLOW SPP's reliable cash flow from its long-term Power Purchase Agreements (PPAs) with the Electricity Authority of Thailand (EGAT) and industrial customers. The company is expected to continue achieving its operational performance targets while maintaining its acceptable financial position.
9. Golden Land Property Development PLC (GOLD) - BBB Stable
Rationale: The stable outlook reflects TRIS Rating's opinion that GOLD will maintain its medium-term performance in the residential, serviced apartment, and rental office markets in line with TRIS Rating's expectation. The stable outlook is based on the assumptions that the company will be able to efficiently manage its projects to cope with unexpected events and rising trend of construction costs. The company is expected to remain committed to its leverage target of one time in the medium term.
10. Home Product Center PLC (HMPRO) BBB - Positive
Rationale: The positive outlook reflects HMPRO's stronger-than-expected operating performance based on the company's successful expansion and its potential to improve operating efficiency following the opening of its new distribution center. A rating upgrade could be considered if the company is able to maintain its market position and improve its operating performance without weakening leverage position.
11. I.C.C. International PLC (ICC) AA- - Stable
Rationale: The stable outlook reflects TRIS Rating's expectation that ICC will continue to maintain its solid market share across the product line despite intense competition. Its conservative financial policy also supports the company's rating.
12. Khanom Electricity Generating Co., Ltd. (KEGCO) - A+ Stable
Rationale: The stable outlook reflects TRIS Rating's expectation that KEGCO will continue to receive stable cash flow from electricity sales from KEGCO's power plants. Khanom power plants are expected to continue to achieve their performance targets while KEGCO's financial coverage is expected to remain at an acceptable level.
13. Lalin Property PLC (LALIN) - BBB+ Stable
Rationale: The stable outlook reflects the expectation that the company will maintain its sales performance and profitability despite increasing construction material costs. The company is expected to conservatively manage its liquidity and leverage while pursuing business expansion.
14. Land & Houses PLC (LH) - A+/A Stable
Rationale: The stable outlook reflects the expectation that LH will continue to maintain its superior financial profile because of its leading position and strong brand name in the residential market.
15. Loxley PLC (Loxley) BBB BBB Stable
Rationale: Loxley's stable outlook reflects the ability of the company to generate earnings from diverse sources of business. Substantial cash on hand and a strong relationship with world-class technology firms will enable the company to bid for a substantial number of large projects over the next 3-5 years. If the company's financial profile continues to improve and it is able to generate strong cash flow without weakening its debt leverage position, TRIS Rating would consider revising the outlook to be positive or upgrading the ratings.
16. Nation Multimedia Group PLC (NMG) BBB BBB Stable
Rationale: NMG's stable outlook reflects the expectation that the company will be able to deliver performance as expected. With the strong franchise value and various media on hand, the company will maintain its strong market position despite the threat from increasing competition. The outlook also reflects the belief that its high financial leverage will gradually decline.
17. Nestle (Thai) Ltd. (NTH) - AAA Stable
Rationale: The stable outlook for the guaranteed debentures of NTH reflects the extremely strong credit profile of the guarantor, Nestle S.A., which is rated "AAA" and "Aaa" by Standard and Poor's and Moody's Investors Service, respectively.
18. Noble Development PLC (NOBLE) BBB BBB Stable
Rationale: The stable outlook reflects the expectation that NOBLE will be able to maintain its performance in both the single detached house and condominium markets in line with TRIS Rating's expectation in
the medium-term, despite lower-than-expected performance during the first quarter of 2004. The trend for housing demand is expected to be favorable due to the solid economic situation.
19. Premier Resort Krabi Co., Ltd. (PRK) - BBB Negative
Rationale: The negative outlook reflects the expectation that the operating performance of the company during the intermediate term will be lower than TRIS Rating's initial forecast. The hotel management team that replaced Starwood in early 2004 needs to prove that it is capable of delivering strong performance. A conservative financial policy that preserves substantial surplus cash generated during high seasons to mitigate liquidity risk during low seasons or during negative events is crucial for PRK's rating. If the company prudently manages its financials and the performance is as strong as originally expected, an outlook revision to stable will be considered.
20. Preuksa Real Estate Co., Ltd. (PREUKSA) BBB BBB Stable
Rationale: The stable outlook reflects TRIS Rating's expectation that PREUKSA will continue to maintain its strong financial position and operating performance, supported by its solid position in the low-to-medium income residential market.
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