TRIS Rating Co., Ltd. has affirmed the company rating of Siam Panich Leasing PLC (SPL) and the ratings of its existing 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 Bt1,000 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 the new and used car hire purchase businesses; moreover, uncertainty regarding Thailand's economic conditions and the sustaining high oil prices should adversely impact demand for automobile hire purchase.
While the "stable" outlook reflects that SPL's experienced management team and efficient operating system will enable the company to maintain both its market position and portfolio growth
in line with TRIS Rating's expectations. Moreover, despite the slow down of economic situation resulting from many negative events, SPL is expected to be able to maintain its profitability and asset quality at an acceptable level.
TRIS Rating said that SPL reported net interest income of Bt1,021 million for the first half of 2005, 5.7% higher than Bt966 million recorded for the same period in 2004. However, its net profit declined by 4% because the operating expenses rose by 29.2%. The operating expenses to total income ratio, which increased from 17.1% in 2003 to 20.7% in 2004, slightly decreased to 20.3% for the first half of 2005. Total loan portfolio increased by 9.3%, from Bt37,341 million at the end of 2004 to Bt40,829 million at the end of June 2005, which was on track to reach management's 2005 growth target of 20%. New automobile sales for the first seven months of 2005 rose by 15.3% from the same period in 2004, in line with the expected growth rate at 10%-15% for the full year. -- End
Siam Panich Leasing PLC (SPL)
Company Rating: Affirmed at A-
Issue Ratings:
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-
SPL074A: Bt500 million senior debentures due 2007 Affirmed at A-
SPL075A: Bt1,250 million senior debentures due 2007 Affirmed at A-
SPL083A: Bt4,000 million senior debentures due 2008 Affirmed at A-
SPL102A: Bt900 million senior debentures due 2010 Affirmed at A-
Bt225 million bills of exchange due 2008 Affirmed at A-
Up to Bt1,000 million senior debentures due 2008 A-
Rating Outlook: Stable
While the "stable" outlook reflects that SPL's experienced management team and efficient operating system will enable the company to maintain both its market position and portfolio growth
in line with TRIS Rating's expectations. Moreover, despite the slow down of economic situation resulting from many negative events, SPL is expected to be able to maintain its profitability and asset quality at an acceptable level.
TRIS Rating said that SPL reported net interest income of Bt1,021 million for the first half of 2005, 5.7% higher than Bt966 million recorded for the same period in 2004. However, its net profit declined by 4% because the operating expenses rose by 29.2%. The operating expenses to total income ratio, which increased from 17.1% in 2003 to 20.7% in 2004, slightly decreased to 20.3% for the first half of 2005. Total loan portfolio increased by 9.3%, from Bt37,341 million at the end of 2004 to Bt40,829 million at the end of June 2005, which was on track to reach management's 2005 growth target of 20%. New automobile sales for the first seven months of 2005 rose by 15.3% from the same period in 2004, in line with the expected growth rate at 10%-15% for the full year. -- End
Siam Panich Leasing PLC (SPL)
Company Rating: Affirmed at A-
Issue Ratings:
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-
SPL074A: Bt500 million senior debentures due 2007 Affirmed at A-
SPL075A: Bt1,250 million senior debentures due 2007 Affirmed at A-
SPL083A: Bt4,000 million senior debentures due 2008 Affirmed at A-
SPL102A: Bt900 million senior debentures due 2010 Affirmed at A-
Bt225 million bills of exchange due 2008 Affirmed at A-
Up to Bt1,000 million senior debentures due 2008 A-
Rating Outlook: Stable