Bangkok--31 Jul--Fitch Ratings Fitch Ratings (Thailand) has today affirmed the ratings of AEON Thana Sinsap (Thailand) Public Company Limited's (AEONTS) National Long-term rating at 'BBB+(tha)' and its National Short-term rating at 'F2(tha)'. The Outlook is Stable. The agency has also assigned AEONTS an expected National Long-term rating of 'AAA(tha)' to the up to THB1 billion guaranteed debentures No. 1/2551 Tranche 1 due 2010 and to the up to THB1bn guaranteed debentures No. 1/2551 Tranche 2 due 2012. The National rating is based on a full, irrevocable and unconditional guarantee to be provided by Mizuho Corporate Bank (MHCB, 'A+'/Outlook Stable) to both tranches and a irrevocable and unconditional guarantee to be provided by Japan Bank for International Cooperation (JBIC), a wholly-owned Japanese government policy bank (Japan sovereign, 'AA'/Outlook Stable) to the longer-dated Tranche 2. Final ratings are contingent upon receipt of final documents conforming to information already received. As both guarantors' credit is above Thailand's international local currency rating of 'A'/Stable Outlook, the guaranteed debentures are rated at the same level as Thailand's sovereign National rating of 'AAA(tha)'. Debenture holders may demand payment of principal and interest firstly from MHCB. In the event MHCB fails to meet the payment of Tranche 2, JBIC will make payment of principal including default interest on such amount of principal. The JBIC guarantee provides additional credit enhancement to the longer-dated Tranche 2 debentures. Fitch notes that any change in the International rating differential between the guarantors' rating and the Thai sovereign rating could affect the debentures' National rating. MHCB's rating reflects its strong franchise in the Japanese and international market, good asset quality and capital. During the fiscal year ending March 2008, MHCB reported a net loss of JPY55.7 billion, a drop from net income of JPY390bn in the fiscal year ending March 2007, due mainly to additional provisions, share losses in its subsidiary (Mizuho Securities) and losses on investment in securitised investment products. However, MHCB continues to grow its business with enhancement of both combination of Investment Banking and Commercial Banking and has recently expanded its overseas network. MHCB's asset quality is among the best in the sector, and compares favorably with international peers, with consolidated NPLs making up just 1.6% of total loans at end-March 2008. JBIC was established in 1999 from the merger of the Export-Import Bank of Japan and the Overseas Economic Cooperation Fund, Japan. JBIC undertakes lending and other financial operations for the promotion of Japanese exports, imports and economic activities overseas. The bank also assists developing countries in their efforts towards economic and social development. At end-March 2008, JBIC's outstanding loans and other financing stood at JPY18 trillion, while its total net assets stood at JPY9.5tn. AEONTS reported a rise in net income of 7.7% to THB1.2bn in FY07 from THB1.1bn in FY06. The net income rose 3.7% yoy to THB293.5m in Q108, up from THB283.1m in Q107 due to moderate growth in personal loan receivables and stringent cost control. At end-FY07, AEONTS' average lagged delinquency rate (overdue and write-offs) remained at year-ago levels of around 10%. The outlook in 2008 has weakened with rising funding costs and lower growth, as well as renewed asset quality pressures, likely to impact profitability in the next year. AEONTS was established in 1992 by AEON Credit Service of Japan (AEON) and has a network of 81 Bangkok and provincial branches and 337 ATM machines, mainly in provincial areas. AEON has a direct stake of 35.1% in AEONTS, and other parent-related entities own an additional 28%. AEONTS provides retail finance to low income segment, including hire-purchase, credit card and personal loan. Note to Editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such 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. Contacts: Darunee Peanmanakit, Vincent Milton, Bangkok +662 655 4752/4759. Media Relations: Shivani Sundralingam, Singapore, Tel: + 65 6796 7215.