TRIS Rating Co., Ltd. has affirmed the company rating of Siam Panich Leasing PLC (SPL), the ratings of SPL's current senior debentures and bills of exchange at "A-". At the same time, TRIS Rating has assigned the rating of "A-" to SPL's proposed Bt500 million senior debentures. The rating outlook 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 in both the new and used car hire purchase businesses and the uncertainty of oil prices, which may have a negative impact on the automobile sales.
The "stable" outlook reflects the fact that SPL will be able to maintain both its strong market position and the growth of its portfolio in line with TRIS Rating's expectations. SPL's experienced management team will be able to maintain non-accrual loans at acceptable levels through a conservative credit approval process.
TRIS Rating reported that SPL's portfolio increased by 28.1% in 2004, from Bt29,152 million at the end of 2003 to Bt37,341 million at the end of 2004. Although the growth rate in 2004 was lower than the 36.2% growth recorded in 2003, the level of growth is in line with TRIS Rating's expectation, as the growth rate of the automobile industry is also declining following years of rapid growth. SPL's net income grew by 8.8% in 2004 to Bt849 million. 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- SPL083A: Bt4,000 million senior debentures due 2008 Affirmed at A- Bt900 million senior debentures due 2010 Affirmed at A- Bt225 million bills of exchange due 2008 Affirmed at A- Bt500 million senior debentures due 2007 A- Rating Outlook: Stable
The "stable" outlook reflects the fact that SPL will be able to maintain both its strong market position and the growth of its portfolio in line with TRIS Rating's expectations. SPL's experienced management team will be able to maintain non-accrual loans at acceptable levels through a conservative credit approval process.
TRIS Rating reported that SPL's portfolio increased by 28.1% in 2004, from Bt29,152 million at the end of 2003 to Bt37,341 million at the end of 2004. Although the growth rate in 2004 was lower than the 36.2% growth recorded in 2003, the level of growth is in line with TRIS Rating's expectation, as the growth rate of the automobile industry is also declining following years of rapid growth. SPL's net income grew by 8.8% in 2004 to Bt849 million. 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- SPL083A: Bt4,000 million senior debentures due 2008 Affirmed at A- Bt900 million senior debentures due 2010 Affirmed at A- Bt225 million bills of exchange due 2008 Affirmed at A- Bt500 million senior debentures due 2007 A- Rating Outlook: Stable