TRIS Rating Co., Ltd. has affirmed the ratings of EASY BUY PLC, former name was SIAM A&C CO., LTD., and its Bt1,000 million bills of exchange at "BBB+". The ratings are based on EASY BUY's good system of credit risk and information management, the strong support it receives from its parent company and strategic partners, and its sound financial performance. The ratings also take into consideration the industry's low penetration rate and strong market demand in the retail finance business. However, the ratings are constrained by the increasingly competitive environment among non-bank consumer finance operators and commercial banks.
At the same time, TRIS Rating has affirmed the rating of EASY BUY's Bt2,000 million guaranteed debentures (SANC05DA) at "AA". The debentures are fully guaranteed by EASY BUY's parent company, ACOM CO., LTD., a company rated "Baa1" with a "positive" outlook by Moody's, "BBB+" and "A" with a "stable" outlook by Standard & Poor's and Fitch Ratings, respectively. The issue rating is based on the credit quality of the guarantor, and the unconditional and irrevocable guarantee of the debentures.
TRIS Rating reported that strong financial and business support from EASY BUY's parent company, ACOM, and its local strategic partners, is crucial for the company's future market position and sustainable growth. All of them have great experience and are market leaders in their core businesses. ACOM is the largest non-bank consumer finance company in Japan, the leader in automated financing operations, and provides a nationwide network, as well as strategic alliances in related businesses. There is a strong link between EASY BUY and ACOM, and EASY BUY can look forward to full support from ACOM in the foreseeable future.
ACOM's rating is supported by its strong market position as the largest consumer finance company in Japan, its strong capital base and high profitability, sound and experienced management team and its strong operating franchise in the consumer finance business. These strengths are constrained by the slowdown in the Japanese consumer finance market and the deterioration of the company's asset quality. In addition, the competitive environment has led to narrower interest spreads, which negatively affect the performance of consumer finance companies.
As of June 2004, EASY BUY's assets represented only 0.1% of ACOM's total assets, and its loan receivables accounted for about 0.4% of ACOM's total receivables. In 2003, the company's contribution to ACOM's net profit was 1.4%. EASY BUY is ACOM's first overseas subsidiary in Southeast Asia, and figures significantly in ACOM's strategy to be a major regional player in the consumer finance industry. ACOM has shown a strong commitment to EASY BUY, providing financial and business support by providing technology, know-how for business practices and developing new products for the Thai market. There is a strong link between ACOM and EASY BUY, and EASY BUY is expected to continue to receive ACOM's full support for the foreseeable future.
EASY BUY's "stable" outlook reflects TRIS Rating's expectation that the company can sustain its solid position in the non-bank consumer finance business due to strong support from its major shareholders, ACOM, Japan and ITOCHU Management (Thailand) Co., Ltd. The outlook also reflects TRIS Rating's expectation that ACOM will be able to sustain its solid position in the non-bank consumer finance market despite the unfavorable growth prospects and intense competitive environment in the Japanese consumer finance industry. The outlook reflects ACOM's ability to maintain its financial performance by adequately controlling asset quality and operating costs as well, TRIS Rating said. -- End
EASY BUY PLC Company Rating: Affirmed at BBB+ Issue Ratings: Bt1,000 million bills of exchange due 2007 Affirmed at BBB+ SANC05DA: Bt2,000 million guaranteed debentures due 2005 Affirmed at AA Rating Outlook: Stable
At the same time, TRIS Rating has affirmed the rating of EASY BUY's Bt2,000 million guaranteed debentures (SANC05DA) at "AA". The debentures are fully guaranteed by EASY BUY's parent company, ACOM CO., LTD., a company rated "Baa1" with a "positive" outlook by Moody's, "BBB+" and "A" with a "stable" outlook by Standard & Poor's and Fitch Ratings, respectively. The issue rating is based on the credit quality of the guarantor, and the unconditional and irrevocable guarantee of the debentures.
TRIS Rating reported that strong financial and business support from EASY BUY's parent company, ACOM, and its local strategic partners, is crucial for the company's future market position and sustainable growth. All of them have great experience and are market leaders in their core businesses. ACOM is the largest non-bank consumer finance company in Japan, the leader in automated financing operations, and provides a nationwide network, as well as strategic alliances in related businesses. There is a strong link between EASY BUY and ACOM, and EASY BUY can look forward to full support from ACOM in the foreseeable future.
ACOM's rating is supported by its strong market position as the largest consumer finance company in Japan, its strong capital base and high profitability, sound and experienced management team and its strong operating franchise in the consumer finance business. These strengths are constrained by the slowdown in the Japanese consumer finance market and the deterioration of the company's asset quality. In addition, the competitive environment has led to narrower interest spreads, which negatively affect the performance of consumer finance companies.
As of June 2004, EASY BUY's assets represented only 0.1% of ACOM's total assets, and its loan receivables accounted for about 0.4% of ACOM's total receivables. In 2003, the company's contribution to ACOM's net profit was 1.4%. EASY BUY is ACOM's first overseas subsidiary in Southeast Asia, and figures significantly in ACOM's strategy to be a major regional player in the consumer finance industry. ACOM has shown a strong commitment to EASY BUY, providing financial and business support by providing technology, know-how for business practices and developing new products for the Thai market. There is a strong link between ACOM and EASY BUY, and EASY BUY is expected to continue to receive ACOM's full support for the foreseeable future.
EASY BUY's "stable" outlook reflects TRIS Rating's expectation that the company can sustain its solid position in the non-bank consumer finance business due to strong support from its major shareholders, ACOM, Japan and ITOCHU Management (Thailand) Co., Ltd. The outlook also reflects TRIS Rating's expectation that ACOM will be able to sustain its solid position in the non-bank consumer finance market despite the unfavorable growth prospects and intense competitive environment in the Japanese consumer finance industry. The outlook reflects ACOM's ability to maintain its financial performance by adequately controlling asset quality and operating costs as well, TRIS Rating said. -- End
EASY BUY PLC Company Rating: Affirmed at BBB+ Issue Ratings: Bt1,000 million bills of exchange due 2007 Affirmed at BBB+ SANC05DA: Bt2,000 million guaranteed debentures due 2005 Affirmed at AA Rating Outlook: Stable