Bangkok--23 Jan--Fitch Affirms
Fitch Ratings (Thailand) Limited has affirmed Holcim Capital (Thailand) Ltd.’s (HCT) THB1.22bn guaranteed debentures due 2015 at the National Long-Term Rating of ‘AA-(tha)’. The Outlook is Stable.
Key Rating Drivers
Guaranteed by Parent: The National Long-Term Rating on HCT’s debentures is based entirely on an irrevocable and unconditional guarantee provided by Switzerland’s Holcim Ltd (Holcim; BBB/Stable). Holcim’s Long-Term Foreign-Currency Issuer Default Rating (IDR) is two notches below Thailand’s ‘A-’ Long-Term Local-Currency IDR, which correlates with ‘AA-(tha)’ on the Thai National Rating scale.
Financing Vehicle: 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% of 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.
Holcim Group’s Worldwide Presence: Holcim group has a strong global market position in cement, aggregates and concrete. There is wide geographical diversification, with a presence in around 70 countries and a balanced mix between developed and emerging markets. 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.
Rating Sensitivity
Any changes in the International Rating differential between Holcim and the Thai sovereign rating may affect the debentures’ National Rating. A one-notch change in the International Rating could also result in a change of more than one notch in the National Rating.
For more information on Holcim, please refer to the credit update dated 6 June 2013 available at www.fitchratings.com.