Bangkok--8 May--Fitch Ratings
Fitch Ratings (Thailand) Limited has assigned Bangkok Mass Transit System Public Company Limited’s (BTSC) four tranches of guaranteed debentures National Long-Term ratings of ‘AA-(tha)’. The tranches - THB2.1bn debenture due August 2013, THB3.6bn debenture due August 2014, THB1.5bn debenture due August 2015 and THB1.3bn debenture due August 2016, are guaranteed by Bank of Ayudhya Public Company Limited (BAY, AA-(tha)/Stable). The Outlook is Stable.
Key Rating Drivers
Guarantee from BAY: The ratings of the debentures are fully based on an unconditional and irrevocable guarantee of principal and interest of the debentures provided by BAY. As a result, the debentures are rated at the same level as the guarantor, BAY.
Established in 1992, BTSC is the operator of BTS Skytrain - an elevated mass rapid rail transit system in Bangkok. After the company sold the net farebox revenue of BTS Skytrain to BTS Rail Mass Transit Growth Infrastructure Fund in April 2013, BTSC relies mainly on the operation and maintenance (O&M) service revenue. Previously, BTSC’s revenue was mainly sourced from the fare collection of the BTS Skytrain.
BTSC also receives revenue from advertising sales, through its subsidiary — VGI Global Media Public Company Limited, leasing of commercial space of BTS Skytrain stations (except extension routes), and interest income from excess cash. The company has also been awarded the O&M contracts for BTS extension routes and Bangkok Bus Rapid Transit system.
Rating Sensitivities
Negative: Future developments that may, individually or collectively, lead to negative rating
action include:
- downgrade of BAY’s ratings or change in the Outlook to Negative
Positive: Future developments that may, individually or collectively, lead to positive rating
action include:
- upgrade of BAY’s ratings or a change in the Outlook to Positive
For more information on BAY, to the credit update dated 8 April 2013 and to the rating action commentary entitled, "Fitch Affirms Bank of Ayudhya at ‘BBB’; Stable Outlook", dated 8 March 2013, available at www.fitchratings.com.