TRIS Rating Co., Ltd. reported today that Bank of Ayudhya PLC’s (BAY) board resolution regarding to the purchase of all issued shares in GE Capital Auto Lease PLC (GECAL) from General Electric Capital Asia Investment, Inc. (GECAI), will be further evaluated, whether it will have any impacts on BAY’s ratings, when the certainties and details of transactions are released.
According to the public information, BAY is in non-binding negotiations to acquire all of GECAL’s shares held by GECAI. The completion of acquisition will require various regulatory and shareholder approvals. BAY’s investment in this transaction will be Bt17 billion, subject to an adjustment price mechanism to reflect changes in the net book value of GECAL at completion, but in any case shall not be more than Bt17.25 billion.
TRIS Rating said, if the transaction is successfully done, BAY’s assets and loan portfolio will grow by approximately 18% and 22%, respectively (based on BAY’s balance sheet for the first half of 2007). With GECAL’s current sizable auto hire purchase loan portfolio, BAY’s consolidated loan portfolio will be in good mix among corporate, SME and consumer loans. Expected benefits in strengthening BAY’s universal banking platform in retail banking business and group synergy enhancement have yet to be monitored.
Currently, TRIS Rating has assigned a “A” company rating for BAY and the “A-” rating for BAY’s B12,000 million subordinated debentures (BAY13NA) with “stable” outlook. -- End
----------------------------------------------------------
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.
According to the public information, BAY is in non-binding negotiations to acquire all of GECAL’s shares held by GECAI. The completion of acquisition will require various regulatory and shareholder approvals. BAY’s investment in this transaction will be Bt17 billion, subject to an adjustment price mechanism to reflect changes in the net book value of GECAL at completion, but in any case shall not be more than Bt17.25 billion.
TRIS Rating said, if the transaction is successfully done, BAY’s assets and loan portfolio will grow by approximately 18% and 22%, respectively (based on BAY’s balance sheet for the first half of 2007). With GECAL’s current sizable auto hire purchase loan portfolio, BAY’s consolidated loan portfolio will be in good mix among corporate, SME and consumer loans. Expected benefits in strengthening BAY’s universal banking platform in retail banking business and group synergy enhancement have yet to be monitored.
Currently, TRIS Rating has assigned a “A” company rating for BAY and the “A-” rating for BAY’s B12,000 million subordinated debentures (BAY13NA) with “stable” outlook. -- End
----------------------------------------------------------
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.