Bangkok--11 May--TRIS Rating
TRIS Rating Co., Ltd. announces today that it still maintains the “A-” ratings for Siam Panich Leasing PLC (SPL) and its debentures after Siam Commercial Bank (SCB) reported last week that its ownership in SPL increased from 36.89% to 92.51% through the voluntary tender offer.
SCB’s top management announced that SCB will use SPL as a vehicle to expand into the automobile hire purchase business. As a subsidiary of SCB, SPL will utilize the bank’s branch network and retail client base to expand its portfolio. SCB will not delist SPL from the Stock Exchange of Thailand within one year and will not make changes to either SPL’s Board of Directors or top management.
TRIS Rating said, although SPL’s credit ratings have been taken into account the implicit support from SCB as a major shareholder, TRIS Rating expects that becoming a subsidiary with more than 90% ownership by SCB should strengthen the business and financial profile of SPL in the future. SPL’s ratings will be revised after seeing evidence of the benefits derived from increasing ownership by SCB. Currently, SPL has been assigned company and issue ratings by TRIS Rating at “A-/Stable”.