TRIS Rating Co., Ltd. has downgraded the company and issue ratings of Krungthai Card PLC (KTC) to “BBB+” from “A-” and has placed the ratings on a CreditAlert with “developing” implication. The rating actions follow the failure of recapitalization plan as the resolution of KTC’s shareholder meeting on 30 April 2009 did not approve the Bt7.74 billion rights offering plan.
The rating downgrade reflects KTC’s financial performance in 2008 which was weaker than expectation and downside risks associated with vulnerable credit profile of customers due to unfavorable economic environment.
TRIS Rating will resolve the CreditAlert with “developing” implication of KTC shortly after receiving plans of the company about future funding scheme and business strategies. -- End
Company Rating: Downgraded to BBB+ from A- Issue Ratings: KTC09OA: Bt2,000 million senior debentures due 2009 Downgraded to BBB+ from A- KTC102A: Bt3,000 million senior debentures due 2010 Downgraded to BBB+ from A- KTC104A: Bt2,500 million senior debentures due 2010 Downgraded to BBB+ from A- KTC106A: Bt1,200 million senior debentures due 2010 Downgraded to BBB+ from A- KTC113A: Bt4,000 million senior debentures due 2011 Downgraded to BBB+ from A- Up to Bt5,000 million senior debentures due within 2012 Downgraded to BBB+ from A- CreditAlert Designation: Developing
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