Bangkok--July 3--TRIS
Thai Rating and Information Services (TRIS) announced Thursday, 3
July 1997, that all ratings assigned by TRIS are placed on CreditAlert
with "negative" implication following the decision by the Bank of Thailand
to allow the exchange rate to float which is a virtual and deliberate
devaluation of baht.
TRIS reported that this will negatively affect the companies that
it rates in two ways: foreign exchange losses and debt servicing burdens.
As of year-end 1996, the total outstanding external debts were reportedly
USD 16,796 million for the government, USD 13,916 million for state
enterprises, and USD 62,282 million for the private sector. In addition,
the higher cost of imported capital goods and raw materials will likely
push up the operating costs of those rated companies and restrict demands
for their products in the short and medium term.
TRIS will monitor closely these effects on the business
environment particularly those issuers with substantial non-baht exposure
in revising their ratings.
Note: TRIS issues "CreditAlert" as part of TRIS's monitoring process, is a
public warning, when there is insufficient information to fully assess and
reconsider a debt instrument's current rating or when significant events
may affect the company's rating already assigned by TRIS because of
changing business conditions. CreditAlert designations may be "positive"
or "negative" or "developing", depending on the likely impact of a
particular situation. The existing rating continues unchanged for the
present. Monitoring is done until the debt instrument matures or the
company's rating contract expires. End.
Thai Rating and Information Services (TRIS) announced Thursday, 3
July 1997, that all ratings assigned by TRIS are placed on CreditAlert
with "negative" implication following the decision by the Bank of Thailand
to allow the exchange rate to float which is a virtual and deliberate
devaluation of baht.
TRIS reported that this will negatively affect the companies that
it rates in two ways: foreign exchange losses and debt servicing burdens.
As of year-end 1996, the total outstanding external debts were reportedly
USD 16,796 million for the government, USD 13,916 million for state
enterprises, and USD 62,282 million for the private sector. In addition,
the higher cost of imported capital goods and raw materials will likely
push up the operating costs of those rated companies and restrict demands
for their products in the short and medium term.
TRIS will monitor closely these effects on the business
environment particularly those issuers with substantial non-baht exposure
in revising their ratings.
Note: TRIS issues "CreditAlert" as part of TRIS's monitoring process, is a
public warning, when there is insufficient information to fully assess and
reconsider a debt instrument's current rating or when significant events
may affect the company's rating already assigned by TRIS because of
changing business conditions. CreditAlert designations may be "positive"
or "negative" or "developing", depending on the likely impact of a
particular situation. The existing rating continues unchanged for the
present. Monitoring is done until the debt instrument matures or the
company's rating contract expires. End.