TRIS Rating Co., Ltd. announces today that it maintains the “A-” rating for Phatra Leasing PLC (PL) and its senior debentures with “stable” outlook after KASIKORNBANK PLC (KBANK)’s Board of Directors resolved on 28 September 2006 about the extension of business scope of KASIKORN LEASING CO., LTD. (K-LEASING) to operating lease business, which will make KBANK and its subsidiaries to gradually pass on the operating lease contracts currently serviced by PL to K-LEASING when the contracts are due. In addition, KBANK’s board resolution approved to divest its investment in other leasing companies which business nature are similar to K-LEASING at the price and timing that the Management deems appropriate.
TRIS Rating said, PL’s 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. On 10 January 2006, KBANK is one of PL’s major shareholder, holding 8.46%. PL’s total leased assets at book value were Bt4,270 million as of June 2006. The proportion of PL’s leased assets for its related companies (KBANK Group) to total leased assets gradually went down, from 31% as of September 2001 to 13% as of June 2006, which has proved PL’s management ability to be less reliance on its related companies.
TRIS Rating expects that KBANK’s move will not immediately affect PL’s ratings, as KBANK Group’s portion will gradually run down in the next five years. TRIS Rating will evaluate PL’s medium-term business and financial profile and will further announce the updated ratings of PL to the public. -- End
Phatra Leasing PLC (PL)
Company Rating: Affirmed at A-
Issue Ratings:
PL073A: Bt100 million senior debentures due 2007 Affirmed at A-
PL079A: Bt400 million senior debentures due 2007 Affirmed at A-
PL081A: Bt200 million senior debentures due 2008 Affirmed at A-
PL08OA: Bt400 million senior debentures due 2008 Affirmed at A-
PL094A: Bt500 million senior debentures due 2009 Affirmed at A-
Bt160 million senior debentures due 2011 Affirmed at A-
Rating Outlook: Stable
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Copyright 2006, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.
TRIS Rating said, PL’s 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. On 10 January 2006, KBANK is one of PL’s major shareholder, holding 8.46%. PL’s total leased assets at book value were Bt4,270 million as of June 2006. The proportion of PL’s leased assets for its related companies (KBANK Group) to total leased assets gradually went down, from 31% as of September 2001 to 13% as of June 2006, which has proved PL’s management ability to be less reliance on its related companies.
TRIS Rating expects that KBANK’s move will not immediately affect PL’s ratings, as KBANK Group’s portion will gradually run down in the next five years. TRIS Rating will evaluate PL’s medium-term business and financial profile and will further announce the updated ratings of PL to the public. -- End
Phatra Leasing PLC (PL)
Company Rating: Affirmed at A-
Issue Ratings:
PL073A: Bt100 million senior debentures due 2007 Affirmed at A-
PL079A: Bt400 million senior debentures due 2007 Affirmed at A-
PL081A: Bt200 million senior debentures due 2008 Affirmed at A-
PL08OA: Bt400 million senior debentures due 2008 Affirmed at A-
PL094A: Bt500 million senior debentures due 2009 Affirmed at A-
Bt160 million senior debentures due 2011 Affirmed at A-
Rating Outlook: Stable
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Copyright 2006, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.