Bangkok--20 Apr--TRIS Rating
TRIS Rating Co., Ltd. has placed the company rating of Seamico Securities PLC (ZMICO) on CreditAlert with “developing” implication, following ZMICO’s shareholder meeting that was held on 18 April 2007. ZMICO’s current controlling shareholder has not yet been formally disclosed. At the meeting, the shareholders voted to pay an unexpected-high dividend, which negatively affects the company’s leverage. In addition, four out of 11 of its board members, including the Chairman of the Board, decided not to be candidates for reappointment. These issues create uncertainty about the company’s financial policies and business model in the future.
The current rating of ZMICO assigned by TRIS Rating is “BBB”. The rating of ZMICO could be lowered if the company applies more aggressive financial policies by continuing to pay out significant amount of dividend to shareholders. However, the rating could be affirmed if the company’s financial profile can be sustained as expected and the company can maintain its market position in the very intense competitive environment in the securities business.
TRIS Rating said that it will review the rating of ZMICO as soon as more information regarding the company’s business profile and financial policy is available, and will announce the rating to the public.