TRIS Rating Co., Ltd. has affirmed the company rating of Siam Panich Leasing PLC (SPL), the ratings of its current senior debentures and the rating of its bills of exchange at "A-". At the same time, TRIS Rating has assigned the rating of "A-" to its proposed up to Bt3,500 million senior debentures. The rating outlook for SPL remains "stable". The ratings are based on the strong market position of SPL in the automobile hire purchase market and its experienced management team. However, these strengths are partially offset by intense competition, due to the entry of captive finance companies into the new car hire purchase business, and aggressive moves by finance companies into both new and used car hire purchase business.
The "stable" outlook reflects the fact that SPL will be able to maintain its strong market position and the growth of its portfolio in line with TRIS Rating's expectations. With an experienced management team and a conservative credit approval process, non-accrual loans will be maintained at an acceptable level, though slightly higher in 2004 compared with 2003.
TRIS Rating reported that SPL will use the proceeds from its proposed debentures to refinance its debentures that will mature in March and May 2005. The new debentures are expected to have a lower coupon than the maturing debentures. In December 2004, Siam Commercial Bank PLC (SCB), the major shareholder of SPL, exercised 15.55 million warrants (SPL-W2) to buy SPL's shares at Bt35 per share. Currently, SCB holds a 27.97% share of SPL. The automobile industry is expected to grow continuously over the next 2-3 years, but at a rate lower than the last three years. SPL will be able to expand its portfolio in line with the growth of the industry, which is expected to grow approximately 10%-15% in 2005. - End
Siam Panich Leasing PLC (SPL) Company Rating: Affirmed at A- Issue Ratings: SPL055A : Bt3,500 million senior debentures due 2005 Affirmed at A- SPL063A : Bt3,000 million senior debentures due 2006 Affirmed at A- SPL073A : Bt3,500 million senior debentures due 2007 Affirmed at A- SPL073B : Bt3,500 million senior debentures due 2007 Affirmed at A- Bt255 million bills of exchange due 2008 Affirmed at A- Up to Bt3,500 million senior debentures due 2007-2008 A- Rating Outlook: Stable