Company Name Company Rating Issue Rating Rating Outlook
Corporate
21. PTT Exploration and Production PLC (PTTEP) AA+ AA+ Positive
Rationale: The positive outlook reflects PTTEP's better-than-expected financial performance as a result of favourable petroleum prices and increased production volume after acquiring the S1 project. The outlook also reflects the company's solid performance and strong financial position.
22. Quality Houses PLC (QH) BBB+ BBB Stable
Rationale: The stable outlook reflects QH's ability to maintain its financial position and recurring income from its serviced apartments and office buildings. The company is expected to improve its single detached house (SDH) sales and to recognize revenue from new SDH projects launched during the second half of 2004.
23. Ratchaburi Electricity Generating Co., Ltd. (RATCHGEN)AA- - Stable
Rationale: The stable outlook reflects TRIS Rating's expectation that RATCHGEN will continue to receive stable cash flows from electricity sales from the Ratchaburi power plants. The Ratchaburi power plants are expected to achieve their performance targets while the company's financial coverage will be maintained at a high level.
24. Ratchaburi Electricity Generating Holding PLC (RATCH)A+ - Stable
Rationale: The stable outlook reflects the outlook of RATCH's major subsidiary, Ratchaburi Electricity Generating Co., Ltd. (RATCHGEN) because the main source of cash flow is from dividends paid by RATCHGEN. The company is expected to take a prudent and conservative approach when making investment decisions.
25. Regional Container Lines PLC (RCL) BBB+ BBB Stable
Rationale: The stable outlook is based on favorable freight rates and good financial performance. However, concerns remain over the new debts incurred from purchasing six new ships, more vessel supply in 2005, and higher fuel costs which can be partially passed on to customers.
26. Royal Garden Resort PLC (RGR) A- A- Stable
Rationale: The stable outlook reflects RGR's improving performance, which is in line with TRIS Rating's expectation. The acquisition of Minor Food Group PLC will enable the company to deliver more stable earnings than when it only owned hotel properties. With the high quality of properties in its portfolio and its solid market position in the fast food business, the company will deliver the expected financial profile.
27. Saha Pathana Inter-Holding PLC (SPI) A A Stable
Rationale: The stable outlook reflects TRIS Rating's expectation of the stability of both the business and financial profiles of SPI. Dividend income from its diverse holdings, mostly of which are in the consumer product sector, will continue to generate strong cash flow for the company in the medium to long term.
28. Sansiri PLC (SIRI) BBB - Stable
Rationale: The stable outlook reflects TRIS Rating's expectation that SIRI will be able to deliver operating performance in line with expectations as a result of strong pre-sales for its condominium projects. The projects' construction is expected to be well-managed. The company is expected to keep its target leverage of one time in the medium term.
29. Seacon Development PLC (SEACON) - A- Stable
Rationale: The stable outlook reflects the expectation that SEACON's contract-based rental and service income will continue to support its good business and financial position. The recent development of new zones and a conservative investment policy are expected to help maintain the company's operating performance.
30. Shin Corporation PLC (SHIN) AA- AA- Stable
Rationale: The stable outlook for SHIN is based on the combined credit profile of its major associated and subsidiary companies, Advanced Info Service PLC (ADVANC) and Shin Satellite PLC (SATTEL), respectively. The dividends received from ADVANC are a major source of cash which makes SHIN's financial performance in line with TRIS Rating's expectations.
31. Siam DR Co., Ltd. (Siam DR) - AA Stable
Rationale: The rating of Siam DR's depositary receipts on Bangchak Petroleum PLC's (BCP) convertible debentures is derived from the principal protection from the Ministry of Finance (MOF) and the credit quality of BCP itself. The rating of this issue may be changed if there is a significant change in BCP's credit quality. Although BCP's credit profile has improved and petroleum and petrochemical prices have increased, the rating of the debentures would need further strengthening of BCP's credit profile before it can be upgraded.
32. Sino-Thai Engineering & Construction PLC (STECON) BBB+ - Stable
Rationale: The stable outlook reflects the expectation that STECON will continue to maintain its operating performance in line with TRIS Rating's expectation in the intermediate term as there are good prospects for the engineering and construction industry. The company is expected to maintain adequate liquidity to enable it to cope with the volatility of construction material costs.
33. Thai Airways International PLC (THAI) AA- AA- Stable
Rationale: The stable outlook is based on the expectation that THAI will continue to generate favorable performance due to the positive trend on demand for air transportation and the continued support from the government as its major shareholder. However, the company will face a difficult competitive environment and higher fuel costs, a portion of which can be passed on to customer as a fuel surcharge.
34. Total Access Communication PLC (TAC) A- A- Stable
Rationale: The stable outlook reflects the ability of TAC to maintain its status as the second largest mobile phone operator. The stable outlook is also based on the ability of the company to improve its profitability despite intense competitive pressures. The company is expected to deliver performance more in line with TRIS Rating's expectation after having reported results weaker than expected during 2001-2002.
35. TPI Polene PLC (TPIPL) BBB- - Stable
Rationale: The stable outlook reflects TPIPL's ability to repay debt obligations as stipulated in the Master Restructuring Agreement. Though increasing coal prices might have a negative impact on the company's production costs in the near future, TRIS Rating believes that the company should be able to maintain its profitability at this level as domestic demand for cement is expected to remain strong.
36. True Corporation PLC (TRUE) BBB A/BBB Stable
Rationale: The stable outlook reflects the expectation that TRUE will be able to sustain its strong market position in fixed line business. Although TRUE is likely to face continued subscriber lost, the company would be able to migrate the loss through growth in its broadband business. However, the company's vulnerable financial position is still the major concern.
37. Unilever Thai Trading Ltd. (UTT) - AAA Stable
Rationale: The stable outlook of UTT's guaranteed debentures is derived from the credit profile of Unilever N.V., the guarantor. Standard and Poor's and Moody's Investors Service assigned the ratings of "A+/Stable" and "A1/Stable", respectively, to Unilever N.V. The guarantor's outlook, based on an improved geographical and product mix, more active brand management, and a cost cutting program, should benefit the group's margins and generate steadily increasing levels of cash flow. This cash flow will enable Unilever N.V. to gradually bring its financial profile in line with that factored into the ratings.
38. United Communication Industry PLC (UCOM) BBB - Stable
Rationale: The stable outlook is based on potential growth of demand on data communication services. UCOM's holding of Total Access Communication PLC's (TAC) shares which listed in the Singapore Stock Exchange, provides some financial flexibility.
39. Vinythai PLC (VNT) BBB BBB Positive
Rationale: VNT's positive outlook reflects the possibility that the rating could be raised in the intermediate term. An upward revision would come should VNT continue to improve its financial profile through strong internal cash flow generation while continuing to reduce its debt levels as scheduled. The financial flexibility of the company has steadily increased after it reduced its debt from Bt13,050 million in 1997 to Bt3,404 million at the end of March 2004.
40. Wiik & Hoeglund PLC (KWH) A- - Negative
Rationale: The negative outlook reflects KWH's lower cash flow protection than TRIS Rating's initial expectation due to a sharp reduction in both domestic and export sales. In addition, the profit margin of the company might decline in the near future if the price of its primary raw material, HDPE resin, remains high, as the company's ability to pass on the price increase to customers is constrained by fierce competition resulting from oversupply in the domestic market.
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Corporate
21. PTT Exploration and Production PLC (PTTEP) AA+ AA+ Positive
Rationale: The positive outlook reflects PTTEP's better-than-expected financial performance as a result of favourable petroleum prices and increased production volume after acquiring the S1 project. The outlook also reflects the company's solid performance and strong financial position.
22. Quality Houses PLC (QH) BBB+ BBB Stable
Rationale: The stable outlook reflects QH's ability to maintain its financial position and recurring income from its serviced apartments and office buildings. The company is expected to improve its single detached house (SDH) sales and to recognize revenue from new SDH projects launched during the second half of 2004.
23. Ratchaburi Electricity Generating Co., Ltd. (RATCHGEN)AA- - Stable
Rationale: The stable outlook reflects TRIS Rating's expectation that RATCHGEN will continue to receive stable cash flows from electricity sales from the Ratchaburi power plants. The Ratchaburi power plants are expected to achieve their performance targets while the company's financial coverage will be maintained at a high level.
24. Ratchaburi Electricity Generating Holding PLC (RATCH)A+ - Stable
Rationale: The stable outlook reflects the outlook of RATCH's major subsidiary, Ratchaburi Electricity Generating Co., Ltd. (RATCHGEN) because the main source of cash flow is from dividends paid by RATCHGEN. The company is expected to take a prudent and conservative approach when making investment decisions.
25. Regional Container Lines PLC (RCL) BBB+ BBB Stable
Rationale: The stable outlook is based on favorable freight rates and good financial performance. However, concerns remain over the new debts incurred from purchasing six new ships, more vessel supply in 2005, and higher fuel costs which can be partially passed on to customers.
26. Royal Garden Resort PLC (RGR) A- A- Stable
Rationale: The stable outlook reflects RGR's improving performance, which is in line with TRIS Rating's expectation. The acquisition of Minor Food Group PLC will enable the company to deliver more stable earnings than when it only owned hotel properties. With the high quality of properties in its portfolio and its solid market position in the fast food business, the company will deliver the expected financial profile.
27. Saha Pathana Inter-Holding PLC (SPI) A A Stable
Rationale: The stable outlook reflects TRIS Rating's expectation of the stability of both the business and financial profiles of SPI. Dividend income from its diverse holdings, mostly of which are in the consumer product sector, will continue to generate strong cash flow for the company in the medium to long term.
28. Sansiri PLC (SIRI) BBB - Stable
Rationale: The stable outlook reflects TRIS Rating's expectation that SIRI will be able to deliver operating performance in line with expectations as a result of strong pre-sales for its condominium projects. The projects' construction is expected to be well-managed. The company is expected to keep its target leverage of one time in the medium term.
29. Seacon Development PLC (SEACON) - A- Stable
Rationale: The stable outlook reflects the expectation that SEACON's contract-based rental and service income will continue to support its good business and financial position. The recent development of new zones and a conservative investment policy are expected to help maintain the company's operating performance.
30. Shin Corporation PLC (SHIN) AA- AA- Stable
Rationale: The stable outlook for SHIN is based on the combined credit profile of its major associated and subsidiary companies, Advanced Info Service PLC (ADVANC) and Shin Satellite PLC (SATTEL), respectively. The dividends received from ADVANC are a major source of cash which makes SHIN's financial performance in line with TRIS Rating's expectations.
31. Siam DR Co., Ltd. (Siam DR) - AA Stable
Rationale: The rating of Siam DR's depositary receipts on Bangchak Petroleum PLC's (BCP) convertible debentures is derived from the principal protection from the Ministry of Finance (MOF) and the credit quality of BCP itself. The rating of this issue may be changed if there is a significant change in BCP's credit quality. Although BCP's credit profile has improved and petroleum and petrochemical prices have increased, the rating of the debentures would need further strengthening of BCP's credit profile before it can be upgraded.
32. Sino-Thai Engineering & Construction PLC (STECON) BBB+ - Stable
Rationale: The stable outlook reflects the expectation that STECON will continue to maintain its operating performance in line with TRIS Rating's expectation in the intermediate term as there are good prospects for the engineering and construction industry. The company is expected to maintain adequate liquidity to enable it to cope with the volatility of construction material costs.
33. Thai Airways International PLC (THAI) AA- AA- Stable
Rationale: The stable outlook is based on the expectation that THAI will continue to generate favorable performance due to the positive trend on demand for air transportation and the continued support from the government as its major shareholder. However, the company will face a difficult competitive environment and higher fuel costs, a portion of which can be passed on to customer as a fuel surcharge.
34. Total Access Communication PLC (TAC) A- A- Stable
Rationale: The stable outlook reflects the ability of TAC to maintain its status as the second largest mobile phone operator. The stable outlook is also based on the ability of the company to improve its profitability despite intense competitive pressures. The company is expected to deliver performance more in line with TRIS Rating's expectation after having reported results weaker than expected during 2001-2002.
35. TPI Polene PLC (TPIPL) BBB- - Stable
Rationale: The stable outlook reflects TPIPL's ability to repay debt obligations as stipulated in the Master Restructuring Agreement. Though increasing coal prices might have a negative impact on the company's production costs in the near future, TRIS Rating believes that the company should be able to maintain its profitability at this level as domestic demand for cement is expected to remain strong.
36. True Corporation PLC (TRUE) BBB A/BBB Stable
Rationale: The stable outlook reflects the expectation that TRUE will be able to sustain its strong market position in fixed line business. Although TRUE is likely to face continued subscriber lost, the company would be able to migrate the loss through growth in its broadband business. However, the company's vulnerable financial position is still the major concern.
37. Unilever Thai Trading Ltd. (UTT) - AAA Stable
Rationale: The stable outlook of UTT's guaranteed debentures is derived from the credit profile of Unilever N.V., the guarantor. Standard and Poor's and Moody's Investors Service assigned the ratings of "A+/Stable" and "A1/Stable", respectively, to Unilever N.V. The guarantor's outlook, based on an improved geographical and product mix, more active brand management, and a cost cutting program, should benefit the group's margins and generate steadily increasing levels of cash flow. This cash flow will enable Unilever N.V. to gradually bring its financial profile in line with that factored into the ratings.
38. United Communication Industry PLC (UCOM) BBB - Stable
Rationale: The stable outlook is based on potential growth of demand on data communication services. UCOM's holding of Total Access Communication PLC's (TAC) shares which listed in the Singapore Stock Exchange, provides some financial flexibility.
39. Vinythai PLC (VNT) BBB BBB Positive
Rationale: VNT's positive outlook reflects the possibility that the rating could be raised in the intermediate term. An upward revision would come should VNT continue to improve its financial profile through strong internal cash flow generation while continuing to reduce its debt levels as scheduled. The financial flexibility of the company has steadily increased after it reduced its debt from Bt13,050 million in 1997 to Bt3,404 million at the end of March 2004.
40. Wiik & Hoeglund PLC (KWH) A- - Negative
Rationale: The negative outlook reflects KWH's lower cash flow protection than TRIS Rating's initial expectation due to a sharp reduction in both domestic and export sales. In addition, the profit margin of the company might decline in the near future if the price of its primary raw material, HDPE resin, remains high, as the company's ability to pass on the price increase to customers is constrained by fierce competition resulting from oversupply in the domestic market.
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