KEY RATING DRIVERS
The bonds are rated at the same level as EB's National Long-Term Rating as they represent the company's unsubordinated and unsecured obligations.
EB's National Ratings are driven by Fitch's view that it is a strategically important subsidiary of ACOM CO., LTD. (BBB+/Stable), which is one of Japan's leading providers of consumer-finance services. EB complements ACOM's strategy of diversifying its business in Asian markets, making use of the group's consumer-lending expertise. ACOM owns 71% of EB, and there are high levels of management control and operational integration.
For further details of EB's rating drivers and sensitivities, please see Fitch Affirms EASY BUY at 'AA(tha)'; Outlook Stable, dated 13 September 2021.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
An upgrade of EB's National Long-Term Rating would likely result in a similar rating action on its senior debt rating, although this would also be dependent on Fitch's consideration of the company's relative strengths on the Thai national rating scale.
Rating action on EB's National Long-Term Rating may arise from a change in ACOM's ability or propensity to support the Thai subsidiary.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Negative rating action on EB's National Long-Term Rating could result in a similar rating action on its senior debt rating, while taking into account the company's credit profile compared to other entities rated on the Thai national rating scale.
DATE OF RELEVANT COMMITTEE
10 September 2021
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 ratings are linked to the credit profile of ACOM.
Additional information is available on www.fitchratings.com
Source: Fitch Ratings