Bangkok--Apr 8--TRIS Rating
TRIS Rating Co., Ltd. has affirmed the company and current issue ratings of Minor International PLC (MINT), formerly Royal Garden Resorts PLC (RGR), at “A-” and has assigned the rating of MINT’s proposed Bt1,100 million senior debentures at “A-”. The rating outlook remains “stable”. These debentures have a term of five years, with fixed semi-annual coupon payments and amortized principal repayments in the fourth and fifth year. The ratings continue to reflect the extensive experience and long-term proven management record of both MINT and The Minor Food Group PLC (MFG). The ratings also take into consideration MINT’s diversified hotel portfolio and MFG’s leading position in the growing quick service restaurant industry. However, these factors are partially offset by the seasonal and cyclical nature of the hotel industry, which is highly sensitive to external factors, and the highly competitive food industry.
While the “stable” outlook is based on the expectation that MINT’s cash flow generation will remain strong; however, financial leverage of the company is likely to remain high in the intermediate term.
TRIS Rating said that MINT will use the proceeds from the proposed debentures for refinancing the bridging loan used to fund the acquisition of Rajadamri Hotel PLC, the owner of Four Seasons Hotel Bangkok, through the Royal Garden Hotel Management Ltd., MINT’s wholly own subsidiary, in December 2004. After funding most of its expansion through debt issuance, MINT’s financial leverage may be slightly weaker. However, MINT’s strong cash flow generation and the improvement made of its business profile through the acquisition of one more proven high quality hotel, Four Seasons Bangkok, support the company’s current rating. End.