TRIS Rating Co., Ltd. has affirmed the company rating of Phatra Leasing PLC (PL) and the ratings of PL's senior debentures (PL04DA and PL066A) at "BBB+" with "stable" outlook. At the same time, TRIS Rating has assigned the rating of PL's proposed Bt400 million senior debentures at "BBB+". The ratings reflect PL's leading position in the automobile operating lease business, continued improvement in profitability, sufficient cash flow protection and good asset quality. The ratings also take into account good prospects for the automobile operating lease business. However, these strengths are partially offset by the high leverage level, the continuing concentration of large customers, and intense competition in the automobile operating lease business, which could dampen PL's profitability. The company is likely to retain its existing major clients, as well as expand its customer base while maintaining its good asset quality. However, its profitability remains pressured by intense competition and the company's leverage is expected to remain high amid its growing portfolio.
TRIS Rating reported that PL continued its strong growth in revenue and profit for the first nine months of FY2004 (October 2003-June 2004). PL's operating lease income was Bt953 million, up 35.3% on a year-on-year basis, led by a steady expansion of lease assets. In addition, PL reported gains from sale of assets held for lease and property foreclosed of Bt89 million, compared with Bt46 million during the same period last year. PL's net profit for the first nine months of FY2004 finished at Bt171 million, a hefty increase of 51.1% from the same period last year. PL funded most of its asset growth by borrowing. As of June 2004, the debt to capitalization ratio was 74.9%, compared with 63.7% as of September 2002 and 73.8% as of September 2003.
TRIS Rating said that PL will use the proceeds from its proposed debentures to repay its short-term borrowings and fund its expansion. -- End
Phatra Leasing PLC (PL) Company Rating: Affirmed at BBB+ Issue Ratings: PL04DA: Bt400 million senior debentures due 2004 Affirmed at BBB+ PL066A : Bt900 million senior debentures due 2006 Affirmed at BBB+ Up to Bt400 million senior debentures due 2007 BBB+ Rating Outlook: Stable
TRIS Rating reported that PL continued its strong growth in revenue and profit for the first nine months of FY2004 (October 2003-June 2004). PL's operating lease income was Bt953 million, up 35.3% on a year-on-year basis, led by a steady expansion of lease assets. In addition, PL reported gains from sale of assets held for lease and property foreclosed of Bt89 million, compared with Bt46 million during the same period last year. PL's net profit for the first nine months of FY2004 finished at Bt171 million, a hefty increase of 51.1% from the same period last year. PL funded most of its asset growth by borrowing. As of June 2004, the debt to capitalization ratio was 74.9%, compared with 63.7% as of September 2002 and 73.8% as of September 2003.
TRIS Rating said that PL will use the proceeds from its proposed debentures to repay its short-term borrowings and fund its expansion. -- End
Phatra Leasing PLC (PL) Company Rating: Affirmed at BBB+ Issue Ratings: PL04DA: Bt400 million senior debentures due 2004 Affirmed at BBB+ PL066A : Bt900 million senior debentures due 2006 Affirmed at BBB+ Up to Bt400 million senior debentures due 2007 BBB+ Rating Outlook: Stable