Fitch Rates EASY BUY#s THB Senior Unsecured Bonds at #AA+(tha)#

Stocks and Financial Services Press Releases Friday December 6, 2019 16:43
Bangkok--6 Dec--Fitch Ratings

Fitch Ratings (Thailand) has assigned a National Long-Term Rating of 'AA+(tha)' to EASY BUY Public Company Limited's (EB; AA+(tha)/Negative) upcoming issue of senior unsecured bonds. The bonds will have a tenor of up to four years.

The bonds are rated at the same level as EB's National Long-Term Rating as they represent its unsubordinated and unsecured obligations.

EB's ratings are driven by Fitch's expectations of extraordinary support from its 71% Japanese owner, ACOM CO., LTD. (A-/Negative). There is a consistent record of operational and financial support from the Japanese parent to the Thai subsidiary. EB's earnings performance has been sound, and it plays an important role in the group's regional strategy.

Any change in EB's National Long-Term Rating would lead to a similar change in the bonds' rating.

Any changes in the credit profile of ACOM would be likely to affect EB's ratings. The Negative Outlook on EB's National Long-Term Rating is driven by the Outlook on ACOM, which in turn is in line with the Outlook on ACOM's parent, Mitsubishi UFJ Financial Group, Inc. (A/Negative); see "Fitch Revises MUFG's Outlook to Negative; Affirms Ratings", dated 23 October 2019.

EB's ratings could also be affected if Fitch believes there are any changes in ACOM's propensity to support EB. For example, Fitch may upgrade EB's ratings if its contribution and importance rise in a way that make it a core subsidiary of ACOM. Conversely, the agency may take negative rating action if the parent significantly reduces its ownership or linkages with EB. However, Fitch does not expect such changes to occur in the medium term.

Additional information is available on

Latest Press Release

EXIM Thailand Joins Hands with Public and Private Alliances in Online Business Matching between Thai SME Exporters and Importers in CLMV and Other ASEAN Countries

Export-Import Bank of Thailand (EXIM Thailand) has collaborated with Bank for Agriculture and Agricultural Cooperatives (BAAC), Thailand Institute of Scientific and Technological Research (TISTR) and such affiliated network partners from the public and...

Resilient ILM made profit in Q2/2020, despite the almost 2-month store closure

ILM announced its first half of the year 2020, generating total revenue over 4 billion baht with a gross profit margin of 44.1%, after focusing on the product mix strategy to cope with COVID-19, while consumer behavior is getting more in favor of house...

SET market report for July 2020

The Stock Exchange of Thailand (SET) Index at end-July closed at 1,328.53 points or a 0.8 percent decline from the previous month with various factors weighed on investors’ sentiments includingUS-China conflict, concerns over the second wave of...

AIS earnings in Q2 drop due to COVID-19. Careful cost management yields profit growth.

AIS reported its Q2 earnings showing net profit of7,235million baht equal to a decline of6.7%compared YoY, but grew3.3%compared to Q1 as a result of strict cost control. Total revenue fell 4.1% to 42,256 million baht. The COVID-19 pandemic already...

Thailand’s Eastern Economic Corridor Promotes Genomics Project as Center of Medical Hub

Thailand, already famed for its world class hospitals and success combating coronavirus, aims to enhance its role as a global medical hub by establishing a Thailand Genomics Sequencing Center in the country’s high-tech Eastern Economic Corridor...

Related Topics