TRIS Rating Co., Ltd. has affirmed the “AAA” rating with “stable” outlook to the Bt5,000 million guaranteed debentures (NTH086A) of Nestle (Thai) Ltd.’s (NTH or Issuer). The debentures are guaranteed unconditionally and irrevocably by Nestle S.A. (Guarantor), which owns 100% of NTH. The issue rating is based on the credit quality of the Guarantor, which is rated “Aaa” with a “stable” outlook by Moody’s Investors Service (Moody’s). The Guarantor is also rated “AAA” by Standard and Poor’s (S&P), with revised outlook to “stable” from “negative” in April 2006. The Guarantor has agreed to guarantee the payment of a maximum amount equal to Bt5,500 million. Although the Guarantor shall not be liable for the guaranteed debentures
in the event that the intervention of any government agency of Thailand expropriates or nationalizes the
assets of the Issuer, TRIS Rating believes that such an event is highly unlikely.
The “stable” outlook of NTH’s guaranteed debentures reflects the extremely strong credit profile of the Guarantor, Nestle S.A., which is rated “AAA” and “Aaa” by S&P and Moody’s, respectively.
TRIS Rating reported that under the guarantee, the Guarantor irrevocably and unconditionally guarantees, as joint and several Guarantor under Article 496 of the Swiss Code of Obligations, to make payment on demand to the debentureholders’ representatives of the principal and any other amounts payable by the Issuer up to a maximum amount of Bt5,500 million. This maximum amount covers the overdue principal, overdue interest, and any other amounts owed with respect to the debentures. The guarantee remains valid even though NTH will sell and license the canned liquid milks, chilled products and UHT businesses to Fraser & Neave Holdings Berhad (F&N), a multinational beverage company based in Malaysia. However, the Guarantor will not be liable to pay any amount pursuant to this guarantee to the extent that the Issuer’s failure to pay has resulted from the occurrence of: the expropriation or nationalization by any government agency of Thailand equal to or exceeding 10% of the consolidated fixed assets of the Issuer and its subsidiaries; or the expropriation or nationalization that has the effect of preventing the Issuer and its subsidiaries from carrying on business; or, the transfer by intervention from any government agency of Thailand of the majority shareholding in, or control over, the Issuer to an entity that is not a member of the Nestle Group. This guarantee is governed by Swiss law. The place of jurisdiction shall be Vevey, Switzerland.
TRIS Rating said, Nestle S.A., the ultimate holding company of the Nestle Group, is a public company listed on the Swiss Exchange. Nestle is the market leader in the branded and packaged food industry. S&P and
Moody’s have rated Nestle S.A. at “AAA” and “Aaa”, respectively. In the view of S&P, the rating for Nestle S.A. reflects the group’s leading position in branded and packaged food in the global marketplace, strong and stable cash generation, an extremely diversified product portfolio, a geographically-diverse customer base and management’s conservative financial policy. The financial profile of Nestle Group has improved significantly in 2004 after it deteriorated as a result of acquisitions, especially Ralston Purina Co., Ltd. in 2001. S&P revised the outlook of Nestle S.A. to “stable” from “negative” in April 2006 due to stronger and sustainable financial
ratios at year-end 2005. — End
Nestl? (Thai) Ltd (NTH)
Issue Rating:
NTH086A: Bt5,000 million guaranteed debentures due 2008 Affirmed at AAA
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.
in the event that the intervention of any government agency of Thailand expropriates or nationalizes the
assets of the Issuer, TRIS Rating believes that such an event is highly unlikely.
The “stable” outlook of NTH’s guaranteed debentures reflects the extremely strong credit profile of the Guarantor, Nestle S.A., which is rated “AAA” and “Aaa” by S&P and Moody’s, respectively.
TRIS Rating reported that under the guarantee, the Guarantor irrevocably and unconditionally guarantees, as joint and several Guarantor under Article 496 of the Swiss Code of Obligations, to make payment on demand to the debentureholders’ representatives of the principal and any other amounts payable by the Issuer up to a maximum amount of Bt5,500 million. This maximum amount covers the overdue principal, overdue interest, and any other amounts owed with respect to the debentures. The guarantee remains valid even though NTH will sell and license the canned liquid milks, chilled products and UHT businesses to Fraser & Neave Holdings Berhad (F&N), a multinational beverage company based in Malaysia. However, the Guarantor will not be liable to pay any amount pursuant to this guarantee to the extent that the Issuer’s failure to pay has resulted from the occurrence of: the expropriation or nationalization by any government agency of Thailand equal to or exceeding 10% of the consolidated fixed assets of the Issuer and its subsidiaries; or the expropriation or nationalization that has the effect of preventing the Issuer and its subsidiaries from carrying on business; or, the transfer by intervention from any government agency of Thailand of the majority shareholding in, or control over, the Issuer to an entity that is not a member of the Nestle Group. This guarantee is governed by Swiss law. The place of jurisdiction shall be Vevey, Switzerland.
TRIS Rating said, Nestle S.A., the ultimate holding company of the Nestle Group, is a public company listed on the Swiss Exchange. Nestle is the market leader in the branded and packaged food industry. S&P and
Moody’s have rated Nestle S.A. at “AAA” and “Aaa”, respectively. In the view of S&P, the rating for Nestle S.A. reflects the group’s leading position in branded and packaged food in the global marketplace, strong and stable cash generation, an extremely diversified product portfolio, a geographically-diverse customer base and management’s conservative financial policy. The financial profile of Nestle Group has improved significantly in 2004 after it deteriorated as a result of acquisitions, especially Ralston Purina Co., Ltd. in 2001. S&P revised the outlook of Nestle S.A. to “stable” from “negative” in April 2006 due to stronger and sustainable financial
ratios at year-end 2005. — End
Nestl? (Thai) Ltd (NTH)
Issue Rating:
NTH086A: Bt5,000 million guaranteed debentures due 2008 Affirmed at AAA
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.