BANGKOK--JAN 8--TRIS
THAI RATING AND INFORMATION SERVICES (TRIS) ANNOUNCED, 8 JANUARY
1997, AN "AA" COMPANY RATING FOR PHATRA THANAKIT PUBLIC COMPANY LIMITED
(PHATRA). THE RATING IS BASED ON ITS CONTINUED STRONG AND COMPETITIVE
STANDINGS IN ITS CORE BUSINESSES, DIVERSIFIED INCOME BASE, SOUND FINANCIAL
PERFORMANCE, SOLID CAPITALIZATION AND ADEQUATE ASSET QUALITY. IT IS
CONSTRAINED BY THE SECTORAL CYCLICAL RISK OF SECURITIES ACTIVITIES AS WELL
AS INCREASING COMPETITION RESULTING FROM THAILAND'S FINANCIAL
LIBERALIZATION AS WELL AS GLOBALIZATION.
THAI FINANCIAL SYSTEM HAS BENEFITED CONSIDERABLY FROM THE
COUNTRY'S STRONG ECONOMIC GROWTH DESPITE THE CURRENT SLOWDOWN. PHATRA,
HOLDING A STRONG POSITION IN THE FINANCE AND SECURITIES SECTOR, HAS BECOME
INTO THE FOURTH LARGEST COMPANY WITH ASSETS OF 68,674 MILLION BAHT IN JUNE
1996. IT IS ONE OF THE FEW MARKET LEADERS IN SECURITIES SECTOR, WELL
REPRESENTED IN MOST SEGMENTS, PARTICULARLY INVESTMENT BANKING AND STOCK
BROKING. A STRONG CUSTOMER AND BUSINESS NETWORK AND MAJOR RESEARCH
CAPABILITY SUPPORT ITS SECURITIES ACTIVITIES. THE COMPANY ALSO MAINTAINS
A PROVEN STANDING IN FINANCE BUSINESS, EMPHASIZING WHOLESALE LENDING
ESPECIALLY IN INFRASTRUCTURE AND PROJECT FINANCING. ITS LOAN BOOK IS
REASONABLY DIVERSIFIED AND LESS EXPOSED TO THE REAL ESTATE SECTOR. IT HAS
POLICY TO AVOID RETAIL MARGIN AND HIRE PURCHASE LOANS. COMPARED WITH ITS
PEERS, PHATRA'S ASSET QUALITY IS ADEQUATE. ALTHOUGH NON-PERFORMING LOANS
HAVE INCREASED TO 4.2% OF AVERAGE LOANS, THEY ARE SUFFICIENTLY PROVIDED
FOR POSSIBLE LOSSES. ITS FAIRLY LARGE SECURITIES PORTFOLIO HAS PERFORMED
ADEQUATELY PROVIDING THE COMPANY WITH DECENT DIVIDEND INCOME. PHATRA'S
WELL-ESTABLISHED MARKET POSITION AND COMPETENT MANAGEMENT TEAM SHOULD
ALLOW THE COMPANY TO WITHSTAND RISING COMPETITION AND THE CHANGING
OPERATING ENVIRONMENT OF THE FINANCIAL SECTOR.
PHATRA HAS ACHIEVED ROBUST OPERATING PERFORMANCE, UNDERPINNED BY
RELATIVELY HIGH INTEREST MARGINS, STRONG NON-INTEREST INCOME AND
COMPETITIVE COST STRUCTURE. ALTHOUGH ITS PROFITABILITY HAS BEEN SOMEWHAT
PRESSURED BY TOUGH OPERATING CONDITIONS PARTICULARLY THE RECENT STOCK
MARKET DOWNTURN, PROFIT MEASURES REMAIN STRONG RELATIVE TO ITS PEERS.
MORE FOCUS ON THE FINANCE BUSINESS HAS RESULTED IN PHATRA'S GROWING NET
INTEREST INCOME WHICH IS EXPECTED TO BE FURTHER SUPPORTED BY LOW COST
FUNDING. ITS MEDIUM-TERM EARNINGS SHOULD REMAIN GENERALLY FAVORABLE
BECAUSE OF GREATER OPERATING EFFICIENCY. THE COMPANY'S FUNDING HAS
DEPENDED LESS ON PUBLIC BORROWINGS, AND HAS MOVED MORE TOWARDS DIVERSE
AND CHEAPER FUND SOURCES. ITS LIQUIDITY POSITION IS SATISFACTORY AND
LIABILITY MANAGEMENT SHOULD CONTINUE TO IMPROVE WITH MORE UTILIZATION OF
LONGER-TERM FUNDS. PHATRA'S CURRENT CAPITALIZATION IS SOLID BOTH BY
INTERNATIONAL STANDARDS AND ITS DOMESTIC PEER AVERAGE. ITS 18.2% TIER-I
CAPITAL RATIO AND STEADY RETAINED EARNINGS SHOULD ADEQUATELY CUSHION THE
COMPANY'S PLANNED BUSINESS EXPANSION. LARGE CREDIT FACILITIES, SIZEABLE
UNREALIZED GAINS IN ITS SECURITIES PORTFOLIO AND ITS ABILITY TO RAISE
FUNDS IN CAPITAL MARKETS ENCHANCE PHATRA'S FINANCIAL FLEXIBILITY.
NOTE: PHATRA THANAKIT PUBLIC COMPANY LIMITED (PHATRA) TRIS'S RATING
SENIOR DEBT: AA
THAI RATING AND INFORMATION SERVICES (TRIS) ANNOUNCED, 8 JANUARY
1997, AN "AA" COMPANY RATING FOR PHATRA THANAKIT PUBLIC COMPANY LIMITED
(PHATRA). THE RATING IS BASED ON ITS CONTINUED STRONG AND COMPETITIVE
STANDINGS IN ITS CORE BUSINESSES, DIVERSIFIED INCOME BASE, SOUND FINANCIAL
PERFORMANCE, SOLID CAPITALIZATION AND ADEQUATE ASSET QUALITY. IT IS
CONSTRAINED BY THE SECTORAL CYCLICAL RISK OF SECURITIES ACTIVITIES AS WELL
AS INCREASING COMPETITION RESULTING FROM THAILAND'S FINANCIAL
LIBERALIZATION AS WELL AS GLOBALIZATION.
THAI FINANCIAL SYSTEM HAS BENEFITED CONSIDERABLY FROM THE
COUNTRY'S STRONG ECONOMIC GROWTH DESPITE THE CURRENT SLOWDOWN. PHATRA,
HOLDING A STRONG POSITION IN THE FINANCE AND SECURITIES SECTOR, HAS BECOME
INTO THE FOURTH LARGEST COMPANY WITH ASSETS OF 68,674 MILLION BAHT IN JUNE
1996. IT IS ONE OF THE FEW MARKET LEADERS IN SECURITIES SECTOR, WELL
REPRESENTED IN MOST SEGMENTS, PARTICULARLY INVESTMENT BANKING AND STOCK
BROKING. A STRONG CUSTOMER AND BUSINESS NETWORK AND MAJOR RESEARCH
CAPABILITY SUPPORT ITS SECURITIES ACTIVITIES. THE COMPANY ALSO MAINTAINS
A PROVEN STANDING IN FINANCE BUSINESS, EMPHASIZING WHOLESALE LENDING
ESPECIALLY IN INFRASTRUCTURE AND PROJECT FINANCING. ITS LOAN BOOK IS
REASONABLY DIVERSIFIED AND LESS EXPOSED TO THE REAL ESTATE SECTOR. IT HAS
POLICY TO AVOID RETAIL MARGIN AND HIRE PURCHASE LOANS. COMPARED WITH ITS
PEERS, PHATRA'S ASSET QUALITY IS ADEQUATE. ALTHOUGH NON-PERFORMING LOANS
HAVE INCREASED TO 4.2% OF AVERAGE LOANS, THEY ARE SUFFICIENTLY PROVIDED
FOR POSSIBLE LOSSES. ITS FAIRLY LARGE SECURITIES PORTFOLIO HAS PERFORMED
ADEQUATELY PROVIDING THE COMPANY WITH DECENT DIVIDEND INCOME. PHATRA'S
WELL-ESTABLISHED MARKET POSITION AND COMPETENT MANAGEMENT TEAM SHOULD
ALLOW THE COMPANY TO WITHSTAND RISING COMPETITION AND THE CHANGING
OPERATING ENVIRONMENT OF THE FINANCIAL SECTOR.
PHATRA HAS ACHIEVED ROBUST OPERATING PERFORMANCE, UNDERPINNED BY
RELATIVELY HIGH INTEREST MARGINS, STRONG NON-INTEREST INCOME AND
COMPETITIVE COST STRUCTURE. ALTHOUGH ITS PROFITABILITY HAS BEEN SOMEWHAT
PRESSURED BY TOUGH OPERATING CONDITIONS PARTICULARLY THE RECENT STOCK
MARKET DOWNTURN, PROFIT MEASURES REMAIN STRONG RELATIVE TO ITS PEERS.
MORE FOCUS ON THE FINANCE BUSINESS HAS RESULTED IN PHATRA'S GROWING NET
INTEREST INCOME WHICH IS EXPECTED TO BE FURTHER SUPPORTED BY LOW COST
FUNDING. ITS MEDIUM-TERM EARNINGS SHOULD REMAIN GENERALLY FAVORABLE
BECAUSE OF GREATER OPERATING EFFICIENCY. THE COMPANY'S FUNDING HAS
DEPENDED LESS ON PUBLIC BORROWINGS, AND HAS MOVED MORE TOWARDS DIVERSE
AND CHEAPER FUND SOURCES. ITS LIQUIDITY POSITION IS SATISFACTORY AND
LIABILITY MANAGEMENT SHOULD CONTINUE TO IMPROVE WITH MORE UTILIZATION OF
LONGER-TERM FUNDS. PHATRA'S CURRENT CAPITALIZATION IS SOLID BOTH BY
INTERNATIONAL STANDARDS AND ITS DOMESTIC PEER AVERAGE. ITS 18.2% TIER-I
CAPITAL RATIO AND STEADY RETAINED EARNINGS SHOULD ADEQUATELY CUSHION THE
COMPANY'S PLANNED BUSINESS EXPANSION. LARGE CREDIT FACILITIES, SIZEABLE
UNREALIZED GAINS IN ITS SECURITIES PORTFOLIO AND ITS ABILITY TO RAISE
FUNDS IN CAPITAL MARKETS ENCHANCE PHATRA'S FINANCIAL FLEXIBILITY.
NOTE: PHATRA THANAKIT PUBLIC COMPANY LIMITED (PHATRA) TRIS'S RATING
SENIOR DEBT: AA