Bangkok--9 Mar--Fitch Ratings
Fitch Ratings (Thailand) has assigned a National Long-Term Rating of 'AA+(tha)' to Easy Buy Public Company Limited's (EB; AA+(tha)/Stable) upcoming issue of senior unsecured bonds of up to THB1 billion.
The bonds will have a maturity of three years. The proceeds from the issue will be used for working capital and debt refinancing.
KEY RATING DRIVERS
The bonds are rated at the same level as EB's National Long-Term Rating of 'AA+(tha)' as they represent the unsubordinated and unsecured obligations of the company.
EB's National Ratings reflect Fitch's view that the company would benefit from extraordinary support, if required, from its parent, Japan-based ACOM CO., LTD. (A-/Stable). Fitch deems EB to be a strategically important subsidiary of the parent, given ACOM's significant 71% ownership, full management control, as well as historical and ongoing evidence of support, such as debt guarantees, direct lending and transfer of technical knowledge.
RATING SENSITIVITIES
Any change in EB's National Long-Term Rating would have a similar effect on the bonds' rating.
The National Ratings of EB may be affected by changes in ACOM's ratings. EB's ratings may also be revised as a result of material changes in ACOM's propensity to provide extraordinary support to the subsidiary. This may occur if ACOM significantly reduces its ownership or financial commitments, indicating a materially lower propensity to provide support, potentially leading to negative rating actions. However, Fitch sees no likelihood in the near term of ACOM lowering its propensity to extend support.