TRIS Rating on Thursday affirms the company rating on Srisawad Corporation Public Company Limited (SET: SAWAD) at BBB+ with a stable outlook. At the same time, TRIS rating assigns the rating of BBB+ to SAWAD’s proposed issues of guaranteed debentures under the medium-term note (MTN) program of up to THB10 billion due within five years.
The debentures are unconditionally and irrevocably guaranteed by Srisawad Power 2014 Co., Ltd. (S2014), SAWAD’s core subsidiary. The proceeds from the debenture issuance will be used for SAWADs debt refinancing and loan portfolio expansion.
The ratings reflect the Company’s strong market position in the title loan business; robust capital, leverage, and earnings; as well as diversified funding source and sufficient liquidity. However, the ratings are constrained by the intensifying competition, fragile economic background, and the Company’s sizable portion of higher risk property-backed loans.
