Bangkok--18 Jun--Fitch Ratings
Fitch Ratings (Thailand) has affirmed the National Long-Term Ratings of Thai ORIX Leasing Company Limited's (TOLC) Thai baht-denominated guaranteed bonds at 'AAA(tha)'. The Outlook is Stable. A full list of rating actions is at the end of this commentary.
KEY RATING DRIVERS
The ratings on TOLC's guaranteed bonds are based entirely on irrevocable and unconditional guarantees provided by its parent company, Japan-based ORIX Corporation (A-/Stable). ORIX's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'A-', which is higher than Thailand's Long-Term Local-Currency IDR of 'BBB+', correlates to the highest rating on Thailand's National Rating scale of 'AAA(tha)'.
TOLC provides financial services covering hire-purchase as well as finance and operating leases for office and transportation equipment and production machinery. TOLC is closely integrated with its parent, as evidenced by consistent support in terms of operation, finance and brand association. TOLC's assets made up about 0.5% of ORIX's total assets at end-September 2017.
For more information on ORIX, please see our credit update, dated 30 August 2017, and rating action commentary, Fitch Affirms ORIX's Ratings at 'A-', Outlook Stable, dated 9 August 2017.
RATING SENSITIVITIES
There is no upside to the ratings, as TOLC's guaranteed bonds are rated at the highest level on Thailand's National Rating scale.
The bond ratings could be downgraded if ORIX's Long-Term Foreign-Currency IDR was at or below Thailand's Long-Term Local-Currency IDR, either by a downgrade of ORIX or an upgrade of Thailand.
The rating actions are as follows:
THB1.0 billion 2.11% guaranteed bond due November 2021 National Long-Term Rating affirmed at 'AAA(tha)'. Outlook Stable
THB1.1 billion 2.14% guaranteed bond due November 2019 National Long-Term Rating affirmed at 'AAA(tha)'. Outlook Stable
THB0.3 billion 2.43% guaranteed bond due November 2022 National Long-Term Rating affirmed at 'AAA(tha)'. Outlook Stable
THB0.4 billion 2.51% guaranteed bond due November 2021 National Long-Term Rating affirmed at 'AAA(tha)'. Outlook Stable
THB0.5 billion 3.25% guaranteed bond due April 2020 National Long-Term Rating affirmed at 'AAA(tha)'. Outlook Stable