Bangkok--22 Mar--TRIS Rating
TRIS Rating Co., Ltd. said that the ratings of the following debentures issued by Siam Commercial Leasing PCL (SCBL), SPL07OA, SPL081A, SPL081B, SPL083A, SPL091A, SPL102A and SPL109A, may be enhanced to reflect the credit profile of Siam Commercial Bank PCL (SCB) if the guarantee letter ensures that the credit risk is the same as the guarantor’s.
As of 8 January 2007, SCB owned 95.47% of SCBL. SCB has clearly demonstrated its intention to use SCBL as its hire purchase arm and has provided SCBL with an ample supply of funds. The existing covenants of the above-referenced debentures that require the debt to equity ratio to be maintained below eight times limits all borrowing and, thus, limits SCBL’s loan portfolio expansion, even if the funding is provided by SCB. SCBL has proposed to amend the terms and conditions to enable it to fully utilize funding sources from SCB; SCB would guarantee such debentures after the amendment of the terms and conditions.
The current company and issue ratings of SCBL are “A-/Stable”. TRIS Rating is now conducting a full review of the credit profile of SCBL, evaluating the credit profile of SCB, and seeking a legal opinion on the guarantee agreement. The final ratings of SCBL and these of the company’s debentures will be announced when the rating process is completed, said TRIS Rating