Fitch Rates Thai ORIX Leasing#s Guaranteed Bonds #AAA(tha)(EXP)#

Stocks and Financial Services Press Releases Friday October 4, 2019 16:27
Bangkok--4 Oct--Fitch Ratings

Fitch Ratings (Thailand) has assigned an expected National Long-Term Rating of 'AAA(tha)(EXP)' to guaranteed bonds of up to THB1.0 billion to be issued by Thai ORIX Leasing Company Limited (TOLC). The Outlook is Stable.

The final rating for the upcoming issuance is contingent upon the receipt of final documents conforming to information already received and the Office of Securities and Exchange Commission's approval of the bond issuance.

KEY RATING DRIVERS

The expected National Long-Term Rating on the guaranteed bond is based entirely on irrevocable and unconditional guarantees provided by Japan-based ORIX Corporation (ORIX; A-/Stable). ORIX's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'A-' is higher than Thailand's Long-Term Local-Currency IDR of 'BBB+'/Positive, and correlates to the highest rating on the national scale of 'AAA(tha)'.

TOLC provides a wide range of leasing products, including finance and auto-operating leases, hire purchase and rentals of equipment and machines. TOLC has been benefitting from financial and operational support from its parent, ORIX, including loans and debts guaranteed and technical support. TOLC's assets stood at THB16.2 billion at end-March 2019 (FYE19).

ORIX holds a stake of 96.6% in TOLC while Bangkok Insurance Public Company Limited owns the remaining 3.4%. ORIX is the largest non-bank finance company in Japan in terms of total assets (JPY12.2 trillion at FYE19).

For more information on ORIX, please refer to the credit report dated 16 August 2019 and to the rating action commentary, "Fitch Affirms ORIX at 'A-'; Outlook Stable", dated 11 July 2019, available at www.fitchratings.com.

RATING SENSITIVITIES

The 'AAA(tha)(EXP)' rating of TOLC's guaranteed bond is the highest on the national scale, implying there is no rating upside. Fitch could downgrade the National Long-Term Ratings of TOLC's guaranteed bonds if ORIX's Long-Term Foreign-Currency IDR were to be at or below Thailand's Long-Term Local-Currency IDR, either by a downgrade of ORIX or an upgrade of Thailand's Long-Term Local-Currency IDR.

DATE OF RELEVANT COMMITTEE
07-Jun-2019
Additional information is available on www.fitchratings.com

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