Fitch Affirms Thailand#s Finansia Syrus at #BBB+(tha)#; Outlook Stable

Stocks and Financial Services Press Releases Thursday July 12, 2018 15:31
Bangkok--12 Jul--Fitch Ratings

Fitch Ratings-Bangkok-12 July 2018: Fitch Ratings (Thailand) has affirmed Finansia Syrus Securities Public Company Limited's (FSS) National Long-Term Rating at 'BBB+(tha)' with a Stable Outlook, and its National Short-Term Rating at 'F2(tha)'.

KEY RATING DRIVERS

The National Ratings reflect FSS's moderate business profile, limited diversification and dependence on retail brokerage income. The ratings are supported by the firm's sound capitalisation and liquidity buffers, which allow FSS to withstand downside risks.

Fitch expects FSS's profitability to remain on par the industry average over the medium term. The company has shown an ability to maintain a comparable brokerage commission fee with the market amid heavy competition. However, volatile trading volume will pressure profitability in light of FSS's high operating cost structure, thin operating margin and capital expenditure requirements.

FSS has maintained a stable market presence in its core segment of retail brokerage. More than 68% of its total revenue is generated from securities brokerage commissions, compared with the 55% industry average. The firm's business strategy could increase the diversity of its revenue base and the quality of its earnings, but Fitch believes there are significant execution risks.

The company has sound capitalisation that is comparable with local peers, as evident from its lower asset/equity ratio of 2.3x, against the industry's 3.9x, at end-2017. The agency believes current capital would enable FSS to buffer moderate downside risks in the medium term.

RATING SENSITIVITIES
A significant reduction in profitability or significantly higher risk profile and risky-asset growth that deviate from industry trends, all over a sustained period, could trigger negative rating action.
The National Ratings could be upgraded if FSS improves its key financial metrics through the industry cycle, while keeping its risk profile and business franchise relatively constant.

Latest Press Release

Photo Release: KBank joins hands with partners to create K PARK, a new form of lifestyle space for suburban communities

KBank unveils the first K PARK on Hathairat 33 Road by teaming up with three business giants, namely, PTT (PTT gas station and Cafe Amazon), SCG Express and Amarin Printing and Publishing to open a new lifestyle space which offers delightful experiences...

CIMB Group Chairman to Step Down by 31 December 2018

CIMB Group ("CIMB" or "the Group") today announced that its Chairman, Dato' Sri Nazir Razak, will step down from his position as Group Chairman, and all other positions within the CIMB group of companies by 31 December 2018. The CIMB Board of Directors...

KTC jointly celebrates Mo-Mo-Paradises 10th anniversary by launching Dine with chances to win an exclusive trip to Japan! with China Airlines.

Mrs. Pranaya Nithananon, Vice President - Credit Card Business, "KTC" or Krungthai Card Public Company Limited, jointly with Mr. Surawech Telan, Managing Director, Noble Restaurant Company Limited, owner of "Mo-Mo-Paradise," a dark brown broth...

Photo Release: AOT entrusts KTAM to manage provident fund for 3 years

Mr.Wichai Bunyu (2nd left), the President of The Airports Of Thailand PCL. Employee's Registered Provident Fund (AOT) and Mr. Visit Balee (1st right), Fund committee recently held a Provident Fund management contract signing ceremony with Mr. Veera...

INDORAMA VENTURES AND LOOP INDUSTRIES JV TO INTRODUCE NEW ERA IN PET AND POLYESTER RECYCLING

Indorama Ventures' world-class manufacturing and Loop's state-of-the-art recycling technology combined to invest in multi-billion dollar sustainable PET resin and polyester market opportunity Demand for supply of sustainable PET sees explosive growth...

Related Topics