Bangkok--Sep 23--TRIS
Thai Rating and Information Service (TRIS) announced
Tuesday, 23 September 1997, that it has downgraded the rating of
Singer Thailand PLC (SINGER)'s 500 million baht senior
debentures from AA- to BBB.
TRIS has removed the rating from CreditAlert where it
was placed on 3 July 1997 because the Bank of Thailand altered
the country's foreign exchange regime from a basket of
currencies to a managed float which was a de facto devaluation
of baht. TRIS based the downgrade on the country's economic
hardship which will adversely import electrical appliance sales
as well as the company's financial profile. SINGER is expected
to face slower sales, higher cost structure, and higher
receivables in arrears. However, the rating is offset by
SINGER's niche market dominance and the sound quality of its
current hire purchase portfolio.
SINGER's total debt of 3,595 million baht currently
includes USD 5 million unhedged, three-year foreign borrowings.
Imported merchandise represented 9% of its products, and costs
of sales were about 4,450 million baht last year.
"CreditUpdate" reviews ratings of companies or debt
issues that have already been rated by TRIS. CreditUpdate occurs
when new debt instruments are issued or if significant events
have taken place that may impact a company's current ratings or
when current ratings are cancelled. The update includes
information to supplement the previously published ratings.
Note: Singer Thailand PLC (SINGER) TRIS's rating
500 mb sr debs Downgraded to BBB from AA-
End.
Thai Rating and Information Service (TRIS) announced
Tuesday, 23 September 1997, that it has downgraded the rating of
Singer Thailand PLC (SINGER)'s 500 million baht senior
debentures from AA- to BBB.
TRIS has removed the rating from CreditAlert where it
was placed on 3 July 1997 because the Bank of Thailand altered
the country's foreign exchange regime from a basket of
currencies to a managed float which was a de facto devaluation
of baht. TRIS based the downgrade on the country's economic
hardship which will adversely import electrical appliance sales
as well as the company's financial profile. SINGER is expected
to face slower sales, higher cost structure, and higher
receivables in arrears. However, the rating is offset by
SINGER's niche market dominance and the sound quality of its
current hire purchase portfolio.
SINGER's total debt of 3,595 million baht currently
includes USD 5 million unhedged, three-year foreign borrowings.
Imported merchandise represented 9% of its products, and costs
of sales were about 4,450 million baht last year.
"CreditUpdate" reviews ratings of companies or debt
issues that have already been rated by TRIS. CreditUpdate occurs
when new debt instruments are issued or if significant events
have taken place that may impact a company's current ratings or
when current ratings are cancelled. The update includes
information to supplement the previously published ratings.
Note: Singer Thailand PLC (SINGER) TRIS's rating
500 mb sr debs Downgraded to BBB from AA-
End.