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 up to Bt1,250 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.
While the "stable" outlook reflects the expectation 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 total loan portfolio increased by 5.1% in Q1/FY2005, from Bt37,374 million at the end of 2004 to Bt39,257 million at the end of Q1/FY2005, on track to reach its management's expected annual growth rate for 2005 of 20%. However, though net interest income grew by 6.8% in Q1/FY2005 when compared with the same period in 2004, operating expenses also rose in Q1/FY2005 causing net income to drop by 6.2% for the same period. SPL's operating expenses to total income ratio increased from 18.0% in Q1/FY2004 to 20.1% in Q1/FY2005. A new vehicle excise tax structure enforced in July 2004 pressures used car prices, SPL suffered from higher loss on the sales of repossessed assets. Losses rose by 145% from Bt45 million in 2003 to Bt110 million in 2004. The automobile industry is expected to grow continuously over the next 2-3 years, but at a rate lower than the last three years, about 10%-15% in 2005.-- End
Siam Panich Leasing PLC (SPL) Company Rating: A- Issue Ratings: SPL055A: Bt3,500 million senior debentures due 2005 A- SPL063A: Bt3,000 million senior debentures due 2006 A- SPL073A: Bt3,500 million senior debentures due 2007 A- SPL073B: Bt3,500 million senior debentures due 2007 A- SPL083A: Bt4,000 million senior debentures due 2008 A- Bt500 million senior debentures due 2007 A- Bt900 million senior debentures due 2010 A- Bt225 million bills of exchange due 2008 A- Up to Bt1,250 million senior debentures due 2007 A- Rating Outlook: Stable
While the "stable" outlook reflects the expectation 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 total loan portfolio increased by 5.1% in Q1/FY2005, from Bt37,374 million at the end of 2004 to Bt39,257 million at the end of Q1/FY2005, on track to reach its management's expected annual growth rate for 2005 of 20%. However, though net interest income grew by 6.8% in Q1/FY2005 when compared with the same period in 2004, operating expenses also rose in Q1/FY2005 causing net income to drop by 6.2% for the same period. SPL's operating expenses to total income ratio increased from 18.0% in Q1/FY2004 to 20.1% in Q1/FY2005. A new vehicle excise tax structure enforced in July 2004 pressures used car prices, SPL suffered from higher loss on the sales of repossessed assets. Losses rose by 145% from Bt45 million in 2003 to Bt110 million in 2004. The automobile industry is expected to grow continuously over the next 2-3 years, but at a rate lower than the last three years, about 10%-15% in 2005.-- End
Siam Panich Leasing PLC (SPL) Company Rating: A- Issue Ratings: SPL055A: Bt3,500 million senior debentures due 2005 A- SPL063A: Bt3,000 million senior debentures due 2006 A- SPL073A: Bt3,500 million senior debentures due 2007 A- SPL073B: Bt3,500 million senior debentures due 2007 A- SPL083A: Bt4,000 million senior debentures due 2008 A- Bt500 million senior debentures due 2007 A- Bt900 million senior debentures due 2010 A- Bt225 million bills of exchange due 2008 A- Up to Bt1,250 million senior debentures due 2007 A- Rating Outlook: Stable