TRIS Rating Co., Ltd. has upgraded the company rating of Phatra Leasing PLC (PL) and the ratings of its senior debentures (PL066A, PL079A and PL08OA) to "A-" from "BBB+". At the same time, TRIS Rating has assigned the rating of "A-" to PL's proposed Bt200 million senior debentures. While the rating outlook remains "stable". The ratings reflect the demonstrated ability of PL's management to maintain a strong market position in the automobile operating lease business despite increasingly intense competition. The ratings also reflect PL's good risk management system and conservative underwriting process that have enabled PL to maintain good asset quality during its portfolio expansion. The ratings take into account the company's improving leverage following its recapitalization plan scheduled for early September 2005. However, these strengths are partially offset by intense competition in the automobile operating lease business that could limit PL's profitability in the future.
The "stable" outlook reflects PL's ability to maintain its leading position in the automobile operating lease business and deliver medium-term performance as expected. The company is likely to retain its existing major clients, as well as expand its customer base while maintaining its good asset quality. However, its profitability remains pressured by intense competition.
TRIS Rating reported that PL continued its favorable growth in leased assets and profitability for the first six months of FY2005 (October 2004-March 2005). The company's operating lease income was Bt712 million, up 13% year-on-year as a result of a steady expansion of leased assets. PL's net profit for the first six months of FY2005 declined to Bt95 million, a decrease from Bt125 million the same period last year, as a result of a decline in gains from sales of leased assets and an IT investment that will enable the company to absorb a larger customer base. PL funded most of its asset growth by borrowing, resulting in high leverage. The proceeds from the proposed Bt200 million debentures will be used to refinance PL's existing short-term bills of exchange due in September 2005, thereby improving the matching of its asset and liability structure. As of March 2005, PL's debt to capitalization ratio increased to 77.98% from 63.7% in September 2002 and 75.83% in September 2004. However, leverage will improve after the company raises its paid-up capital by Bt150 million in September 2005 by offering new shares at Bt2.30 per share, TRIS Rating said. -- End
Phatra Leasing PLC (PL) Company Rating: Upgraded to "A-" from "BBB+" Issue Ratings: PL066A: Bt900 million senior debentures due 2006 Upgraded to "A-" from "BBB+" PL079A: Bt400 million senior debentures due 2007 Upgraded to "A-" from "BBB+" PL08OA: Bt400 million senior debentures due 2008 Upgraded to "A-" from "BBB+" Bt200 million senior debentures due 2008 A- Rating Outlook: Stable
The "stable" outlook reflects PL's ability to maintain its leading position in the automobile operating lease business and deliver medium-term performance as expected. The company is likely to retain its existing major clients, as well as expand its customer base while maintaining its good asset quality. However, its profitability remains pressured by intense competition.
TRIS Rating reported that PL continued its favorable growth in leased assets and profitability for the first six months of FY2005 (October 2004-March 2005). The company's operating lease income was Bt712 million, up 13% year-on-year as a result of a steady expansion of leased assets. PL's net profit for the first six months of FY2005 declined to Bt95 million, a decrease from Bt125 million the same period last year, as a result of a decline in gains from sales of leased assets and an IT investment that will enable the company to absorb a larger customer base. PL funded most of its asset growth by borrowing, resulting in high leverage. The proceeds from the proposed Bt200 million debentures will be used to refinance PL's existing short-term bills of exchange due in September 2005, thereby improving the matching of its asset and liability structure. As of March 2005, PL's debt to capitalization ratio increased to 77.98% from 63.7% in September 2002 and 75.83% in September 2004. However, leverage will improve after the company raises its paid-up capital by Bt150 million in September 2005 by offering new shares at Bt2.30 per share, TRIS Rating said. -- End
Phatra Leasing PLC (PL) Company Rating: Upgraded to "A-" from "BBB+" Issue Ratings: PL066A: Bt900 million senior debentures due 2006 Upgraded to "A-" from "BBB+" PL079A: Bt400 million senior debentures due 2007 Upgraded to "A-" from "BBB+" PL08OA: Bt400 million senior debentures due 2008 Upgraded to "A-" from "BBB+" Bt200 million senior debentures due 2008 A- Rating Outlook: Stable