Bangkok--9 Sep--Fitch Ratings
Fitch Ratings (Thailand) Limited has today assigned a National Long-term rating of ‘A(tha)’ to The Siam Cement Public Company Limited’s (SCC; ‘A(tha)’/Positive/’F1(tha)’) up to THB10.0bn new unsecured and unsubordinated debentures No.2/2011 due 2015. The proceeds will be used to refinance the company’s maturing debentures.
SCC’s ratings reflect diversified cash flow generation from its three core businesses of petrochemical, cement and paper. The ratings are also supported by SCC’s leading position in its businesses in Thailand, extensive and long-established distribution channels, strong brands in the domestic market, and management’s strong track record.
SCC’s credit profile is constrained by the cyclicality of its core businesses and by Thailand’s large excess capacity in cement. Supply surplus in the global petrochemical market is likely to continue to put pressure on SCC’s profitability in H211. SCC’s EBITDAR margin declined to 11.0% in H111 from 13.4% in H110 due to thinner product-to-feed spreads of petrochemical products.
Contact:
Primary Analyst
Pimrumpai Panyarachun
Associate Director
+66 2 655 4752
Fitch Ratings (Thailand) Limited
Wave Place 13th Fl.
Wireless Road, Lumpini, Patumwan
Bangkok 10330
Secondary Analyst
Somruedee Chaiworarat
Associate Director
+662 655 4762