Bangkok--21 Sep--Fitch Ratings
Fitch Ratings (Thailand) has today affirmed the National Long-Term Ratings on the Thai baht-denominated guaranteed bonds of Thai ORIX Leasing Company Limited (TOLC) at 'AAA(tha)'. The Outlooks are Stable.
KEY RATING DRIVERS
The National Long-Term Ratings on these guaranteed bonds are based entirely on irrevocable and unconditional guarantees provided by Japan-based ORIX Corporation (ORIX, A-/Stable), which is TOLC's parent. ORIX's Long-Term Foreign Currency Issuer Default Rating (IDR) of 'A-' is higher than Thailand's Long-Term Local Currency IDR of 'BBB+'. Therefore, its corresponds to 'AAA(tha)', the highest rating on Thailand's National Rating Scale.
TOLC offers various financial services, covering hire-purchase, finance leases and operating leases for office equipment, production machinery and transportation equipment. TOLC benefits from operational and financial support from ORIX. TOLC's assets made up about 0.5% of ORIX's total assets at end-March 2017.
For more information on ORIX, please refer to the credit report dated 30 August 2017 and to the rating action commentary entitled, Fitch Affirms ORIX's Ratings at 'A-', Outlook Stable dated 9 August 2017 and available at www.fitchratings.com
RATING SENSITIVITIES
The ratings on TOLC's guaranteed bonds at 'AAA(tha)' are already at the highest level on the national rating scale, so a rating upgrade is not possible.
A downgrade could be triggered if ORIX's Long-Term Foreign Currency IDR were to be lowered to below Thailand's Long-Term Local Currency IDR, either by a downgrade of ORIX itself or an upgrade of Thailand above ORIX. However, both scenarios appear unlikely to occur in the near term given the Stable Outlook of ORIX's and Thailand's ratings.
The rating actions are as follow:
The National Long-Term Ratings of the following THB guaranteed bonds are affirmed at 'AAA(tha)'. The Outlooks are Statble.
- THB0.65 billion guaranteed bond
- THB1.50 billion guaranteed bond
- THB0.50 billion guaranteed bond
- THB0.40 billion guaranteed bond
- THB1.10 billion guaranteed bond