Bangkok--20 Jul--Fitch Ratings Fitch Ratings (Thailand) Limited has today affirmed the National Long-term rating of ‘AAA(tha)’ on Tri Petch Isuzu Sales Company Limited’s (TIS) THB1.0 billion guaranteed debentures due in 2008 and THB2.0bn guaranteed debentures due in 2009, which are fully, irrevocably and unconditionally guaranteed by Mitsubishi Corporation (MC, rated Long-term Foreign Currency Issuer Default Rating (IDR) ‘A+’, Outlook Stable). At the same time, the agency has affirmed the ‘AAA(tha)’ rating on TIS’s THB3.5bn amortising and guaranteed debentures due in 2008, which are fully, irrevocably and unconditionally guaranteed by MC, and irrevocably and unconditionally principal guaranteed by Japan Bank for International Cooperation (JBIC). The rating Outlook for all three debentures remains Stable. As MC’s rating is currently above Thailand’s International Long-term Local Currency IDR of ‘A’, the guaranteed debentures are capped at the sovereign National rating of ‘AAA(tha)’. For the THB3.5bn amortising issue, the JBIC guarantee provides additional credit enhancement to the debentures. Nevertheless, the National rating of the guaranteed debentures is limited by Thailand’s sovereign National rating, and is rated at ‘AAA(tha)’. Fitch says that any change in the International rating differential between MC and the Thai sovereign will affect the debentures’ National rating. The ratings of MC reflect its leading position in the general trading company sector, strong operating performance and considerable financial flexibility. MC maintains a solid business franchise in various sectors, particularly energy, natural resource and metal products with significant upstream interests in these products. The company has exhibited robust operating performance in the last four years, particularly in FYE05-FYE06. The record low leverage is a result of the robust results. MC has significant liquidity and liquidity sources, as well as a solid track record in capital markets activities and fund raising. The ratings also reflect its successful track record and disciplined approach in the pursuit of profit growth opportunities. However, broad rating concerns centre on its increasing earnings dependence on fast-growing energy and natural resource businesses, which points to its potential vulnerability to price volatility. The company’s assets and equity are highly sensitive to market risk as a large part of assets are investment holdings and receivables. In addition, the absolute amount of debt is large, presenting a vulnerability to potential financial market fluctuations. As JBIC is a wholly-owned Japanese government policy bank, its credit rating is similar to the sovereign rating for Japan (‘AA’/ Stable). TIS is around 89% owned by the MC group. The company is the largest distributor of commercial vehicles in Thailand and is involved in automobile-related businesses, i.e. car assembly, die and parts manufacturing, after-sales service, automobile export, transportation and car hire-purchase, via its subsidiaries and associates. TIS has maintained a leading market position in commercial vehicles in Thailand for 24 consecutive years, with a market share of around 40%. Contacts: Lertchai Kochareonrattanakul, Soamsiri Chadavadh, Vincent Milton, Bangkok, +662 655 4755; Satoru Aoyama, Tokyo, +81 3 3288 2691. Note to Editors: Fitch’s National ratings provide a relative measure of creditworthiness for rated entities in countries with sub- or low-investment grade international sovereign 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. Fitch’s rating definitions and the terms of use of such ratings are available on the agency’s public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch’s code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the ‘Code of Conduct’ section of this site.