TRIS Rating Co., Ltd. has announced a CreditAlert with “negative” implications for the company rating of King Power Duty Free Co., Ltd. (KPD). The CreditAlert comes after the board of directors of the Airport of Thailand PLC (AOT) resolved to nullify the duty-free contract signed with KPD. The AOT’s decision came after recalculating the investment value of the contract with KPD. Upon recalculation, the contract was determined to be worth more than Bt1,000 million and therefore must be approved under the terms of the Public-Private Joint Venture Act.
TRIS Rating said, the method for calculating the investment value was based on a ruling by the Council of the State sent to AOT on 19 March 2007. KPD’s contract was nullified because such duty-free contract did not follow the approval process specified under the Public-Private Joint Venture Act. The board of AOT also agreed to forward its decision to the office of the Attorney-General to consider further action. Although KPD’s operations at Suvarnabhumi airport will not immediately cease, the AOT decision is expected to lower the confidence of investors about the certainty of KPD’s duty free business at Suvarnabhumi airport. The lower confidence will negatively affect KPD’s funding.
The current company rating of KPD is “BBB+”. TRIS Rating will conduct a full review
of KPD’s rating and will release the rating result to the public after the review process is complete. — End
King Power Duty Free Co., Ltd. (KPD)
Company Rating: BBB+
CreditAlert Designation: Negative
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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.
TRIS Rating said, the method for calculating the investment value was based on a ruling by the Council of the State sent to AOT on 19 March 2007. KPD’s contract was nullified because such duty-free contract did not follow the approval process specified under the Public-Private Joint Venture Act. The board of AOT also agreed to forward its decision to the office of the Attorney-General to consider further action. Although KPD’s operations at Suvarnabhumi airport will not immediately cease, the AOT decision is expected to lower the confidence of investors about the certainty of KPD’s duty free business at Suvarnabhumi airport. The lower confidence will negatively affect KPD’s funding.
The current company rating of KPD is “BBB+”. TRIS Rating will conduct a full review
of KPD’s rating and will release the rating result to the public after the review process is complete. — End
King Power Duty Free Co., Ltd. (KPD)
Company Rating: BBB+
CreditAlert Designation: Negative
-------------------------------------------------------
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.