The final rating is in line with the expected rating assigned on 3 August 2023 after final documentation confirmed the information previously received.
KEY RATING DRIVERS
The rating on TOLC's guaranteed bond is based entirely on the irrevocable and unconditional guarantees provided by its Japan-based parent, ORIX Corporation (A-/Stable). ORIX's Long-Term Foreign-Currency Issuer Default Rating (IDR) is higher than Thailand's Long-Term Local-Currency IDR of 'BBB+'/Stable, and hence correlates to the highest rating on the Thai national scale of 'AAA(tha)'. The Stable Outlook on the long-term guaranteed bond is consistent with that on the guarantor, ORIX.
For further information, please see Fitch Rates Thai ORIX Leasing's Guaranteed Bonds 'AAA(tha)(EXP)'. For more details on ORIX's key rating drivers and rating sensitivities, please see Fitch Affirms Japan's ORIX at 'A-'; Outlook Stable.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
The National Long-Term Rating on the guaranteed bonds could be downgraded if ORIX's Long-Term Foreign-Currency IDR becomes lower than Thailand's Long-Term Local-Currency IDR, either through an upgrade of the Thai sovereign rating or a downgrade of ORIX's rating. Any action will also take into account relativities on the Thai national rating scale.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
The rating on the guaranteed bonds are at the highest level on the national scale and an upgrade is not possible.
Date of Relevant Committee
11 May 2023
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
The final rating of TOLC's guaranteed bonds is linked to ORIX's Long-Term Foreign-Currency IDR.
Additional information is available on www.fitchratings.com
Source: Fitch Ratings