TRIS Rating Co., Ltd. has announced a CreditAlert for the company rating of Seamico Securities PLC (ZMICO) with “developing” implication, following ZMICO’s shareholder meeting held on 20 March 2009. The resolutions of the shareholder meeting were to transfer a significant portion of securities business to consolidate with KTB Securities Co., Ltd. (KTBS) under the new successor, KT-ZMICO Securities Co., Ltd. (KTZ), and to return a substantial cash to the shareholders. The business transferred is expected to be completed within the next 2-3 months.
TRIS Rating reported that ZMICO acquired KTBS from individual shareholders in September 2008 and currently holds 48.81% of shares in KTBS, while 50% of total shares are owned by Krungthai Bank PLC (KTB) and 1.19% are held by other individual shareholders. A consolidation of the securities business between ZMICO and KTBS is expected to fully benefit from the utilization of KTB’s branch network and receive KTB’s financial supports. However, there might be some transition risks during the merging period and future uncertainty from the use of proceeds from the merging transactions.
TRIS Rating will review the rating of ZMICO, currently at “BBB”, as soon as there are more available information concerning the disclosure of the joint venture agreement between ZMICO and KTBS, and the company’s future business profile and financial policy. The revised rating will then be announced to the public. -- End
Company Rating: BBB CreditAlert Designation: Developing
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