KEY RATING DRIVERS
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 belief that the company is a strategically important subsidiary of Japan-based ACOM CO., LTD. (BBB+/Stable). ACOM owns 71% of EB and the Thai subsidiary plays a key role in the group's regional strategy as one of the largest non-bank personal loan providers in Thailand. There are also significant levels of integration and linkages between ACOM and EB.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
An upgrade of EB's National Long-Term Rating would result in a similar rating action on its senior debt rating. This may arise from a change in ACOM's ability or propensity to support EB. Positive rating action on the parent's Long-Term Issuer Default Rating may lead to similar rating action on EB, although this would also be dependent on Fitch's consideration of the subsidiary's relative strengths on the Thai national rating scale.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Negative rating action on EB's National Long-Term Rating would result in a similar rating action on its senior debt rating. This may be due to a perceived change in the level of institutional support, such as from a decline in linkages between ACOM and EB, including a substantial reduction in the level of management control, operational integration, and shareholding to below 50% with the presence of significant minority shareholders.
For further details on EB's key rating drivers and rating sensitivities, please see Fitch Revises Outlook on EASY BUY to Stable; Affirms Ratings, dated 6 October 2020.
DATE OF RELEVANT COMMITTEE
05 October 2020
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
EB's national rating is linked to the credit profile of ACOM.
Additional information is available on www.fitchratings.com
Source: Fitch Ratings