Bangkok--21 Oct--Fitch Ratings
Fitch Ratings (Thailand) Limited has said that although the severe flooding in central provinces of Thailand will impact economic growth in Q411, the direct impact on companies rated by Fitch should be limited to two companies with operational sites in the affected area. Nevertheless, there is no immediate rating impact on these companies.
In particular, the production plants of SVI Public Company Limited’s (SVI, rated ‘BBB+(tha)’/Stable) are located in Bangkadi Industrial Estate which is at risk of flooding. While SVI has insurance for property damage and business interruption, the impact on its operations and financial position could be material. MBK Public Company Limited’s (MBK, rated ‘A-(tha)’/Stable) golf course and rice packaging facilities could also be flooded, although these are small contributors to MBK’s overall operating cash flows.
As of 20 October 2011, Fitch maintained coverage of 22 corporates in Thailand.