FINANCE:Tris Rating has assigned an A rating to the proposed issue of up to 3 billion baht in senior debentures by Thanachart Capital.The company and existing issue ratings were also affirmed at A. The outlook is stable.
Tris said the ratings reflected TCAP's position as an investment holding company of Thanachart Group, its management control of Thanachart Bank through a 50.92%stake, and a stable stream of dividends from TBANK. The ratings take into consideration capable management,improved risk management, strong capital base and strong business and financial support from its strategic partner, Bank of Nova Scotia.
Strengths are constrained by high competition and uncertainty in the banking, hire-purchase and securities industries."These factors might limit the group's profitability and business expansion in the future."
A significant business shift through the acquisition of Siam City Bank (SCIB), if it wins the deal, would be the major development in the near future, Tris added.
TCAP shares closed yesterday on the SET at 21.20 baht, down 40 satang,in trade worth 208.34 million baht.
BANGKOK POST
16 January 2010