Bangkok--Mar 4--TRIS
Thai Rating and Information Services (TRIS) announced Tuesday, 4
March 1997, in a CreditAlert that the ratings of Finance One PLC (Fin-1)
and its affiliated companies, Securities One PLC (S-ONE) and One Holding
PLC (ONE), are placed on CreditAlert with "negative" implications,
indicating the ratings may be lowered.
The placement Follows unfavorable developments within the group
regarding liquidity and asset quality as well as weakened operating
performance over recent years that lead to the announcement of Fin-1's
planned merger with Thai Danu Bank PLC (TDB). Despite Fin-1's large
presence in the financial market, the Group's activities have
significantly relied on securities sector performance which has been hurt
by the sector downturn for the past few years. The recent economic
slowdown with problems in the real estate sector and dampened public
confidence in the financial sector have also added difficulties to Fin-1's
finance business.
Although its chosen merger with TDB appears to be in line with the
regulator's policy, details of the merger and final resolution are still
at an early stage and under scrutiny by the authorities. Given these risk
factors, TRIS will meet and discuss with the Fin-1 Group about future
developments on its business standing and debt services particularly the
existing debys worth 6,250 million baht in total and determine how much
Fin-1 and its affiliates' creditworthiness and ratings will be affected.
End.
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.
Thai Rating and Information Services (TRIS) announced Tuesday, 4
March 1997, in a CreditAlert that the ratings of Finance One PLC (Fin-1)
and its affiliated companies, Securities One PLC (S-ONE) and One Holding
PLC (ONE), are placed on CreditAlert with "negative" implications,
indicating the ratings may be lowered.
The placement Follows unfavorable developments within the group
regarding liquidity and asset quality as well as weakened operating
performance over recent years that lead to the announcement of Fin-1's
planned merger with Thai Danu Bank PLC (TDB). Despite Fin-1's large
presence in the financial market, the Group's activities have
significantly relied on securities sector performance which has been hurt
by the sector downturn for the past few years. The recent economic
slowdown with problems in the real estate sector and dampened public
confidence in the financial sector have also added difficulties to Fin-1's
finance business.
Although its chosen merger with TDB appears to be in line with the
regulator's policy, details of the merger and final resolution are still
at an early stage and under scrutiny by the authorities. Given these risk
factors, TRIS will meet and discuss with the Fin-1 Group about future
developments on its business standing and debt services particularly the
existing debys worth 6,250 million baht in total and determine how much
Fin-1 and its affiliates' creditworthiness and ratings will be affected.
End.
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.