Bangkok--23 Aug--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 up to THB1.5 billion of senior unsecured bonds.
The bonds will have a maturity of two 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 ratings are driven by Fitch's expectations of institutional support from its parent, namely ACOM CO., LTD. (A-/Stable). This view reflects EB's strategic importance to its parent as indicated by the parent's significant 71% ownership, high levels of management control and integration, and ongoing evidence of funding and operational support.
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. Fitch may take rating action if the agency believes there are changes in ACOM's propensity to provide extraordinary support to EB. For example, Fitch may upgrade EB's ratings if its significance to the parent increases in a way that makes it a core subsidiary of the parent. The agency may take negative rating action if the parent significantly reduces its ownership or withholds financial commitments. However, Fitch does not expect such changes to occur in the medium term.