TRIS Rating Co., Ltd. has affirmed the rating of Shin Corporation PLC (SHIN) at "AA-". At the same time, TRIS Rating has cancelled the rating of SHIN's Bt3,000 million senior debentures (SHIN075A) due to the early redemption. The company rating reflects the combined credit profile of SHIN's major associated and subsidiary companies, Advanced Info Service PLC (ADVANC) and Shin Satellite PLC (SATTEL), respectively. The rating also takes into consideration SHIN's professional, experienced, and capable management team and the company's strong financial flexibility. The remained "stable" rating outlook is based on the combined credit profile of SHIN's major associated and subsidiary companies, ADVANC and SATTEL, respectively. TRIS Rating expects that SHIN will continuously receive substantial stream of dividend from ADVANC.
TRIS Rating reported that SHIN is a holding company with total assets of Bt39,600 million at the end of 2004. The combined market value of its investments in listed companies on the Stock Exchange of Thailand (SET) at the end of 2004 was Bt150,000 million. SHIN's portfolio concentrates on the telecommunications sector, with the media and e-business sectors added to diversify its portfolio and provide synergy to the group. Recently, SHIN invested in a low cost airline and a consumer finance business to further its diversification aim.
While ADVANC is well positioned as the market leader among mobile phone network providers and continuously delivered strong operational performance. SATTEL's core business, transponder rental service, is testing its new iPSTAR satellite, which is expected to be launched in the second quarter of 2005, later than the original schedule of the second half of 2004. SATTEL's contribution to SHIN is expected to be higher after the launch of iPSTAR.
TRIS Rating also said that SHIN's management has a clear policy to hold majority stakes in its investments in order to control the management and cash flows of the invested companies. SHIN usually appoints the chief executive officers or chief financial officers in its subsidiaries and associated companies. Management teams in each business line have extensive experience and proven capability of maintaining strong market positions and pursuing growth.
SHIN's operating margin before depreciation and amortization, before its share of net results from subsidiaries, joint ventures and associated firms has varied. The variation is because SHIN acts as a holding company, adjusting its investment portfolio over time. SHIN's ability to raise funds during prior unfavorable market conditions proves the group's credibility among investors, supporting its financial flexibility. Although the current investments in listed companies represent strategic holdings, their huge market value is considered SHIN's largest source of liquidity. The market value of investments in listed companies was more than seven times of its consolidated debt at the end of 2004, TRIS Rating said. -- End
Shin Corporation PLC (SHIN) Company Rating: AA- Rating Outlook: Stable
TRIS Rating reported that SHIN is a holding company with total assets of Bt39,600 million at the end of 2004. The combined market value of its investments in listed companies on the Stock Exchange of Thailand (SET) at the end of 2004 was Bt150,000 million. SHIN's portfolio concentrates on the telecommunications sector, with the media and e-business sectors added to diversify its portfolio and provide synergy to the group. Recently, SHIN invested in a low cost airline and a consumer finance business to further its diversification aim.
While ADVANC is well positioned as the market leader among mobile phone network providers and continuously delivered strong operational performance. SATTEL's core business, transponder rental service, is testing its new iPSTAR satellite, which is expected to be launched in the second quarter of 2005, later than the original schedule of the second half of 2004. SATTEL's contribution to SHIN is expected to be higher after the launch of iPSTAR.
TRIS Rating also said that SHIN's management has a clear policy to hold majority stakes in its investments in order to control the management and cash flows of the invested companies. SHIN usually appoints the chief executive officers or chief financial officers in its subsidiaries and associated companies. Management teams in each business line have extensive experience and proven capability of maintaining strong market positions and pursuing growth.
SHIN's operating margin before depreciation and amortization, before its share of net results from subsidiaries, joint ventures and associated firms has varied. The variation is because SHIN acts as a holding company, adjusting its investment portfolio over time. SHIN's ability to raise funds during prior unfavorable market conditions proves the group's credibility among investors, supporting its financial flexibility. Although the current investments in listed companies represent strategic holdings, their huge market value is considered SHIN's largest source of liquidity. The market value of investments in listed companies was more than seven times of its consolidated debt at the end of 2004, TRIS Rating said. -- End
Shin Corporation PLC (SHIN) Company Rating: AA- Rating Outlook: Stable