Bangkok--May 19--Fitch Ratings
Fitch Ratings (Thailand) today downgraded the National rating on Primus Leasing Company Limited’s (“Primus”) guaranteed notes issued under its medium-term note programmes and its guaranteed bills of exchange to ‘AA(tha)’ from ‘AA+(tha)’. Primus is a Thai subsidiary of Ford Credit of the US. The Outlook on the guarantor, Ford Credit, is Negative, indicating the likelihood of further downgrades on Primus’ National rating. Fitch’s rating actions follow an upgrade of the Thai sovereign’s International Long-term foreign currency rating to ‘BBB+’ from ‘BBB’ and Long-term local currency rating to ‘A’ from ‘A-’ (A minus) with a Stable Outlook.
Fitch says Primus’ National rating is based on the full, irrevocable and unconditional guarantee by Ford Credit and the creditworthiness of Primus' parents, Ford and Ford Credit, both of the US, which are currently rated ‘BBB+’ on the international scale with a Negative Outlook. With last week’s upgrade of Thailand’s International local currency rating to ‘A’, the ratings of Ford or Ford Credit and Primus relative to the Thai sovereign have slipped, which necessitated today’s downgrade of Primus’ National rating.
Fitch says that going forward, any other changes in the International rating differential between Ford or Ford Credit and the Thai sovereign will also have an impact on Primus’ National rating. As National ratings are by definition a relative ranking of creditworthiness, and in Thailand's case the sovereign is defined to be ‘AAA(tha)’, a sovereign rating change automatically prompts a review of rating relativities.
Note to Editors: Fitch’s National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated ‘AAA’ and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as ‘AAA(tha)’ for National ratings in Thailand. Specific letter grades are not therefore internationally comparable.
Contact:
Chaiyapat Paitoon, Vincent Milton, Bangkok +662 655 4762/4759;
David Marshall, Hong Kong +852 2263 9963. End.