Bangkok--10 Nov--Fitch Ratings
Fitch Ratings (Thailand) has assigned a final National Long-Term Rating of 'AAA(tha)' to Thai ORIX Leasing Company Limited's (TOLC) THB1.5bn guaranteed bonds. The guaranteed bonds were issued in two tranches of THB1.1bn due in 2019 and THB0.4bn due in 2021. The Outlooks are Stable.
The rating action follows the completion of the bond issue as well as the receipt of final documents conforming to information previously received.
KEY RATING DRIVERS
The ratings on the guaranteed bonds are based entirely on irrevocable and unconditional guarantees provided by Japan-based ORIX Corporation (ORIX; A-/Stable). ORIX's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'A-' is higher than Thailand's Long-Term Local-Currency IDR of 'BBB+', and hence correlated to 'AAA(tha)', the highest rating on the national scale.
For further information, please refer to the rating action commentary Fitch Rates Thai ORIX Leasing's Guaranteed Bonds 'AAA(tha)(EXP) (https://www.fitchratings.com/site/pr/1012267), dated 28 September 2016. For more information on ORIX, please refer to the credit report (https://www.fitchratings.com/site/re/886618), dated 30 August 2016, and to the rating action commentary entitled, Fitch Affirms ORIX's Rating at 'A-'; Outlook Stable (https://www.fitchratings.com/site/pr/1010170), dated 10 August 2016.
RATING SENSITIVITIES
The ratings of TOLC's guaranteed bonds are the highest on the national scale; hence, no rating upside is possible. A downgrade could be triggered if ORIX's Long-Term Foreign-Currency IDR is lower than Thailand's Long-Term Local-Currency IDR, either through a downgrade of ORIX's rating or an upgrade of Thailand's rating. However, this is unlikely to occur in the near term as reflected in their Stable Outlooks.