The rating action follows the completion of the bond issue as well as the receipt of final documents conforming to information previously received.
KEY RATING DRIVERS
The National Long-Term Rating on the guaranteed bonds is based entirely on irrevocable and unconditional guarantees provided by Japan-based ORIX Corporation (ORIX; A-/Stable), which owns 97% of TOLC. ORIX's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'A-' is higher than Thailand's Long-Term Local-Currency IDR of 'BBB+' and it therefore corresponds to 'AAA(tha)', the highest rating on Thailand's national rating scale.
For further information, please refer to the rating action commentary "Fitch Rates Thai ORIX Leasing's Guaranteed Bonds 'AAA(tha)(EXP)'", dated 16 October 2017. For more information on ORIX, please refer to the full rating report ORIX Corporation, dated 30 August 2017, and to the rating action commentary "Fitch Affirms ORIX's Ratings at 'A-', Outlook Stable", dated 9 August 2017.
RATING SENSITIVITIES
The rating on TOLC's guaranteed bonds at 'AAA(tha)' is already at the highest level on the national rating scale, so no rating upgrade is possible.
A downgrade could be triggered if ORIX's Long-Term Foreign-Currency IDR were to be lowered to below Thailand's Long-Term Local-Currency IDR, either by a downgrade of ORIX itself or an upgrade of Thailand above ORIX. However, both scenarios appear unlikely to occur in the near term given the Stable Outlook of ORIX's and Thailand's ratings.