KEY RATING DRIVERS
The senior unsecured debentures are rated at the same level as ASK's National Long-Term Rating, as they represent the company's unsecured and unsubordinated obligations and rank equally with its other similar obligations.
ASK's ratings reflect Fitch's assessment of extraordinary support from the ultimate controlling shareholder, Taiwan-based Chailease Holding Company Limited (BBB-/Stable), in case of need. We view ASK as a strategically important subsidiary of Chailease with a key role in the parent's presence in south-east Asia.
For more details on ASK's key rating drivers and sensitivities, please see Fitch Affirms Asia Sermkij Leasing at 'A(tha)'/Stable; Upgrades Short-Term Rating to 'F1+(tha)', dated 7 August 2023.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
The rating on the senior unsecured debentures would be downgraded if there is similar action on the company's National Long-Term Rating. This may occur if Chailease's ability or propensity to support ASK declines, while also taking into account ASK's credit profile relative to other entities rated on Thai National Rating scale.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
Any upgrade of ASK's National Long-Term Rating would have a similar effect on the rating of the senior unsecured debentures. This could be driven by an upgrade of Chailease's Long-Term Issuer Default Rating (IDR), for example, or a positive reassessment by Fitch of ASK's strategic importance to Chailease.
Date of Relevant Committee
29 November 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.
Source: Fitch Ratings