Bangkok--22 Jun--CPF
TRIS Rating assigned the ratings for new issue of debentures and upgraded the ratings of Charoen Pokphand Foods Public Company Limited and its existing debentures to A+ from A.
The ratings reflect the company’s leading position in Thailand’s agribusiness industry, its diverse mix of products and markets, its fully vertical integration and management’s ability to respond to the ever-changing business environment.
The “stable” outlook reflects the expectation that CPF will be able to maintain its leading position in the changing global food market. CPF’s competitive advantage is expected to be further strengthened after the completion of its new processed chicken plant and achievement of full vertical integration for its shrimp business. The decision to brand most domestic fresh productions with the “CP” name is strategically important and should partially insulate the company from the cyclicality of prices for its basic products.
Mr. Adirek Sripratak, President & CEO, said “the Company plans to offer THB5,000 million debentures within the beginning of July 2006. The proceeds will be used for working capital and partially for debt repayment. The debentures will be offered into 2 series. The first one will be 3-year debenture worth THB1,000 million and the other will be 5-year debenture worth THB4,000 million. Bangkok Bank Public Company Limited is an underwriter of this offering.