Bangkok--22 Mar--Fitch Ratings
Fitch Ratings (Thailand) has assigned a National Long-Term Rating of 'AA+(tha)' to EASY BUY Public Company Limited's (EB; AA+(tha)/Stable) upcoming issue of senior unsecured bonds. The bonds will have a tenor of up to three years, and proceeds from the issuance will be used for working capital and debt refinancing.
KEY RATING DRIVERS
The bonds are rated at the same level as EB's National Long-Term Rating of 'AA+(tha)' as they represent the unsubordinated and unsecured obligations of the company.
EB's ratings are driven by Fitch's view that it is a strategically important subsidiary of ACOM CO., LTD. (A-/Stable) of Japan. ACOM owns 71% of EB and has management control of the Thai entity. EB has strong synergies with its parent, and there is ongoing evidence of funding and operational support.
RATING SENSITIVITIES
Any change in EB's National Long-Term Rating would lead to a similar change in the bonds' rating.
EB's National Long-Term Rating could be affected by any changes in ACOM's ratings, which would reflect a shift in ACOM's ability to support EB.
EB's ratings could also be affected if Fitch believes there are any changes in ACOM's propensity to provide extraordinary support to EB. For example, Fitch may upgrade EB's ratings if its contributions rise in a way that makes it a core subsidiary of the group. Conversely, the agency may take negative rating action if the parent significantly reduces its ownership or financial support to EB. However, Fitch does not expect such changes to occur in the medium term.