TRIS Rating Co., Ltd. has affirmed the company rating of Phatra Leasing PLC (PL) and the ratings of its senior debentures (PL066A, PL079A, PL08OA, PL081A) at "A-" with "stable" outlook. At the same time, TRIS Rating has assigned the "A-/Stable" rating to PL's proposed up to Bt700 million senior debentures. The ratings reflect the demonstrated ability of PL's management to maintain a strong market position in the automobile operating lease business despite increasingly intense competition. The ratings also reflect PL's good risk management system and conservative underwriting process, which have enabled PL to maintain good asset quality during its portfolio expansion. The ratings take into account the company's improving leverage following its recapitalization in early September 2005. However, these strengths are partially offset by intense competition in the automobile operating lease business, which could limit PL's future profitability.
The "stable" outlook reflects PL's ability to maintain its leading position in the automobile operating lease business and deliver medium-term performance as expected. The company is likely to retain its existing major clients, and expand its customer base while maintaining its good asset quality. However, its profitability remains pressured by intense competition.
TRIS Rating reported that PL continued its favorable growth in leased assets for the first nine months of FY2005 (October 2004-June 2005). PL's gross leased assets increased to Bt5,762 million as of June 2005 from Bt4,995 million as of September 2004. The company's revenue for the first nine months of FY2005 also increased by 8.6% to Bt1,155 million from Bt1,063 million during the same period in FY2004. As of June 2005, PL's debt to capitalization ratio decreased slightly to 77.82% from 77.98% as of March 2005. The ratio decreased to around 71% after PL raised its paid-up capital by Bt150 million in early September 2005 by offering new shares at Bt2.30 per share.
TRIS Rating said that PL will use the proceeds from the proposed Bt700 million debentures to refinance PL's existing short-term bills of exchange that come due in October 2005, thereby alleviating the company's interest rate risk by matching its asset and liability structure. The new issue will increase PL's funding cost, but it is still in line with TRIS Rating's expectation. -- End
Phatra Leasing PLC (PL) Company Rating: Affirmed at A- Issue Ratings: PL066A: Bt900 million senior debentures due 2006 Affirmed at A- PL079A: Bt400 million senior debentures due 2007 Affirmed at A- PL08OA: Bt400 million senior debentures due 2008 Affirmed at A- PL081A: Bt200 million senior debentures due 2008 Affirmed at A- Up to Bt700 million senior debentures due 2009 A- Rating Outlook: Stable
The "stable" outlook reflects PL's ability to maintain its leading position in the automobile operating lease business and deliver medium-term performance as expected. The company is likely to retain its existing major clients, and expand its customer base while maintaining its good asset quality. However, its profitability remains pressured by intense competition.
TRIS Rating reported that PL continued its favorable growth in leased assets for the first nine months of FY2005 (October 2004-June 2005). PL's gross leased assets increased to Bt5,762 million as of June 2005 from Bt4,995 million as of September 2004. The company's revenue for the first nine months of FY2005 also increased by 8.6% to Bt1,155 million from Bt1,063 million during the same period in FY2004. As of June 2005, PL's debt to capitalization ratio decreased slightly to 77.82% from 77.98% as of March 2005. The ratio decreased to around 71% after PL raised its paid-up capital by Bt150 million in early September 2005 by offering new shares at Bt2.30 per share.
TRIS Rating said that PL will use the proceeds from the proposed Bt700 million debentures to refinance PL's existing short-term bills of exchange that come due in October 2005, thereby alleviating the company's interest rate risk by matching its asset and liability structure. The new issue will increase PL's funding cost, but it is still in line with TRIS Rating's expectation. -- End
Phatra Leasing PLC (PL) Company Rating: Affirmed at A- Issue Ratings: PL066A: Bt900 million senior debentures due 2006 Affirmed at A- PL079A: Bt400 million senior debentures due 2007 Affirmed at A- PL08OA: Bt400 million senior debentures due 2008 Affirmed at A- PL081A: Bt200 million senior debentures due 2008 Affirmed at A- Up to Bt700 million senior debentures due 2009 A- Rating Outlook: Stable