The bonds will have maturities of up to seven years and the total issue size will be up to THB2.0bn. The proceeds from the issue will be used for general corporate purposes and refinancing.
KEY RATING DRIVERS
The bonds are rated at the same level as the consumer financing company's National Long-Term Rating of 'AA+(tha)', in accordance with Fitch's criteria.
EB's National Ratings reflect Fitch's expectation of a high probability of institutional support from its Japanese parent, ACOM CO., LTD. (ACOM; A-/Negative).
Fitch believes EB is a strategically important subsidiary of ACOM, as reflected in ACOM's 71%-majority ownership and full management control. There is also clear evidence of ongoing and previous financial and operational support, such as debt guarantees, direct lending and the transfer of technical knowledge.
RATING SENSITIVITIES
Any change in EB's National Long-Term Rating would have a similar effect on the bonds' rating.
Any change in ACOM's ratings could have a similar effect on EB's National Long-Term Rating. Indications of a weaker propensity from ACOM to provide support to EB could result in a downgrade of EB's National Ratings. This may be indicated by a significant decrease in ACOM's ownership or level of commitment to provide financial support. However, Fitch does not view this as probable in the near term.
EB's other ratings are not affected, and are as follow:
National Long-Term Rating at 'AA+(tha)'; Outlook Negative
National Short-Term Rating at 'F1+(tha)'
National Long-Term Rating on outstanding senior unsecured bonds at 'AA+(tha)'