Bangkok--28 Jan--Fitch Ratings
Fitch Ratings (Thailand) Limited has affirmed Holcim Capital (Thailand) Ltd.’s (HCT) THB2bn guaranteed debentures due 2015 at National Long-Term ‘AA-(tha)’. The Outlook is Stable.
The ratings are based entirely on an irrevocable and unconditional guarantee by Holcim Ltd (Holcim; ‘BBB’/Stable). Holcim’s ratings reflect its strong global market positions in cement, aggregates and concrete, its complementary product portfolio and its wide geographic diversification.
Holcim’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BBB’ is two notches below Thailand’s ‘A-’ Long-Term Local-Currency IDR, which correlates with ‘AA-(tha)’ on the Thai National Rating scale. As a result, changes in the International rating differential between Holcim and Thailand may affect the debentures’ National rating. Also, a one-notch change in the International rating could result in a change of more than one notch in the National rating.
HCT provides financial support to Holcim’s affiliated companies in Thailand by investing in debentures issued by Thai Roc-Cem Ltd., which holds 27.5% in Siam City Cement Public Company Limited (SCCC, ‘A(tha)’/Stable) — Thailand’s second largest cement producer. HCT’s shareholders are Thai Roc-Cem Ltd. (51%) and Holderfin B.V. Netherlands (49%). Thai Roc-Cem Ltd. is 100%-owned by Holcim Participations (Thailand) Ltd., a 100%-owned subsidiary of Holderfin B.V., which is in turn wholly owned by Holcim Ltd. In December 2012, Holcim group reduced its stake in SCCC to 27.5% from 36.8%, but it remains one of the two largest shareholders in SCCC.
For more information on Holcim, please refer to the credit update dated 14 November 2012 and to the rating action commentary entitled, “Fitch Affirms Holcim at ‘BBB’; Stable Outlook”, dated 21 January 2013, available at www.fitchratings.com.
Contacts:
Primary Analyst
Obboon Thirachit
Director
+66 2655 4757
Fitch Ratings (Thailand) Limited
Wave Place 13th Fl.
Wireless Road, Lumpini, Patumwan
Bangkok 10330, Thailand
Secondary Analyst
Pimrumpai Panyarachun
Associate Director
+66 2655 4752
Committee Chairperson
Jeong Min Pak
Senior Director
+82 2 3278 8360