Bangkok--23 Aug--Fitch Ratings
Fitch Ratings (Thailand) Limited has downgraded Canadoil Asia Limited’s (CASIA) THB1bn short-term bills of exchange (B/E) programme to National Short-term ‘B(tha)’ from ‘F3(tha)’ and withdrawn the rating.
The rating has been withdrawn because there is insufficient information to maintain the rating. Fitch will no longer provide ratings or analytical coverage on this issuer.
The downgrade reflects CASIA’s worse-than-expected liquidity management, following rescheduling of certain short-term loans. Fitch views that the company is likely to be further exposed to liquidity risk in 2011 as rising raw material costs put pressure on working capital needs. CASIA’s liquidity could also be impacted by other related companies if it continues to provide support to group companies. At end-2010, CASIA had unutilised credit facilities of THB50.6m and cash available of THB2.9m, underscoring its liquidity risks.