TRIS Rating Co., Ltd. said that the ratings of the following debentures issued by Siam Commercial Leasing PCL (SCBL), SPL07OA, SPL081A, SPL081B, SPL083A, SPL091A, SPL102A and SPL109A, may be enhanced to reflect the credit profile of Siam Commercial Bank PCL (SCB) if the guarantee letter ensures that the credit risk is the same as the guarantor’s.
As of 8 January 2007, SCB owned 95.47% of SCBL. SCB has clearly demonstrated its intention to use SCBL as its hire purchase arm and has provided SCBL with an ample supply of funds. The existing covenants of the above-referenced debentures that require the debt to equity ratio to be maintained below eight times limits all borrowing and, thus, limits SCBL’s loan portfolio expansion, even if the funding is provided by SCB. SCBL has proposed to amend the terms and conditions to enable it to fully utilize funding sources from SCB; SCB would guarantee such debentures after the amendment of the terms and conditions.
The current company and issue ratings of SCBL are “A-/Stable”. TRIS Rating is now conducting a full review of the credit profile of SCBL, evaluating the credit profile of SCB, and seeking a legal opinion on the guarantee agreement. The final ratings of SCBL and these of the company’s debentures will be announced when the rating process is completed, said TRIS Rating -- End.
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Copyright 2007, 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.
As of 8 January 2007, SCB owned 95.47% of SCBL. SCB has clearly demonstrated its intention to use SCBL as its hire purchase arm and has provided SCBL with an ample supply of funds. The existing covenants of the above-referenced debentures that require the debt to equity ratio to be maintained below eight times limits all borrowing and, thus, limits SCBL’s loan portfolio expansion, even if the funding is provided by SCB. SCBL has proposed to amend the terms and conditions to enable it to fully utilize funding sources from SCB; SCB would guarantee such debentures after the amendment of the terms and conditions.
The current company and issue ratings of SCBL are “A-/Stable”. TRIS Rating is now conducting a full review of the credit profile of SCBL, evaluating the credit profile of SCB, and seeking a legal opinion on the guarantee agreement. The final ratings of SCBL and these of the company’s debentures will be announced when the rating process is completed, said TRIS Rating -- End.
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Copyright 2007, 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.