TRIS Rating Co., Ltd. has affirmed the company rating of Phatra Leasing PLC (PL) and the ratings of its senior debentures at "A-". At the same time, TRIS Rating has assigned the rating of "A-" to PL's proposed up to Bt200 million senior debentures. The 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 the company's good risk management system and conservative underwriting process that have enabled PL to maintain good asset quality during its portfolio expansion. However, these strengths are partially offset by less favourable economic and business environment (i.e. rising oil prices, intense competition and rising funding cost) that could limit PL's profitability and business expansion 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 is still pressured by intense competition and higher cost of funding.
TRIS Rating reported that PL is pressured by intense competition and rising oil prices. Therefore, the company's leased asset growth and profitability in FY2005 (October 2004-September 2005) and the first quarter of FY2006 were gradually weaker. PL's average new lease assets decreased to Bt346 million per quarter during FY2005 and the first quarter of 2006, from Bt455 million per quarter during FY2004. The company's net profit was Bt182 million in 2005, down from Bt199 million in 2004. PL's net profit for the first three months of FY2006 declined to Bt45 million, from Bt50 million the same period last year, as a result of a decrease in gains from sales of leased assets and narrower profit margin. PL funded most of its asset growth by borrowing, resulting in high leverage. However, the company's leverage improved after recapitalization in September 2005, making the ratio of debt to capitalization decreased to 69.86% from 77.98% in March 2005. The proceeds from the proposed Bt200 million debentures will match the company's asset and liability structure. -- End
Phatra Leasing PLC (PL) Company Rating: Affirmed at A- Issue Ratings: PL066A: Bt900 million senior debentures due 2006 Affirmed at A- PL073A: Bt100 million senior debentures due 2007 Affirmed at A- PL079A: Bt400 million senior debentures due 2007 Affirmed at A- PL08OA: Bt400 million senior debentures due 2008 Affirmed at A- PL081A: Bt200 million senior debentures due 2008 Affirmed at A- PL094A: Bt500 million senior debentures due 2009 Affirmed at A- Up to Bt200 million senior debentures due 2011 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 is still pressured by intense competition and higher cost of funding.
TRIS Rating reported that PL is pressured by intense competition and rising oil prices. Therefore, the company's leased asset growth and profitability in FY2005 (October 2004-September 2005) and the first quarter of FY2006 were gradually weaker. PL's average new lease assets decreased to Bt346 million per quarter during FY2005 and the first quarter of 2006, from Bt455 million per quarter during FY2004. The company's net profit was Bt182 million in 2005, down from Bt199 million in 2004. PL's net profit for the first three months of FY2006 declined to Bt45 million, from Bt50 million the same period last year, as a result of a decrease in gains from sales of leased assets and narrower profit margin. PL funded most of its asset growth by borrowing, resulting in high leverage. However, the company's leverage improved after recapitalization in September 2005, making the ratio of debt to capitalization decreased to 69.86% from 77.98% in March 2005. The proceeds from the proposed Bt200 million debentures will match the company's asset and liability structure. -- End
Phatra Leasing PLC (PL) Company Rating: Affirmed at A- Issue Ratings: PL066A: Bt900 million senior debentures due 2006 Affirmed at A- PL073A: Bt100 million senior debentures due 2007 Affirmed at A- PL079A: Bt400 million senior debentures due 2007 Affirmed at A- PL08OA: Bt400 million senior debentures due 2008 Affirmed at A- PL081A: Bt200 million senior debentures due 2008 Affirmed at A- PL094A: Bt500 million senior debentures due 2009 Affirmed at A- Up to Bt200 million senior debentures due 2011 A- Rating Outlook: Stable