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Fitch Ratings affirms Finansa Public Company Limited's rating at 'BBB-(tha)'.

Bangkok: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, affirmed Finansa Public Company Limited's (FNS) National Long-Term Rating at 'BBB-(tha)' with a Stable Outlook. It also affirmed the company's National Short-Term Rating at 'F3(tha)'.

It faces refinancing risk due to its dependence on short- to medium-term debentures. These risks are mitigated by committed credit lines from lenders, ongoing cash generation, and an established investor base for its debentures.

The ratings reflect FNS's limited domestic franchise with investment banking being its core business. The company has diversified its revenue through investments in warehouses and factories that provide stable rental income. The ratings take into account Fitch's expectation of a steady improvement in leverage and capital profile over the medium term based on FNS's debt repayment plan over the next two years. FNS's capitalisation and leverage profile have improved. The gross debt/adjusted EBITDA ratio is now less prone to fluctuation compared with pre-2015 levels. The gross leverage ratio has also eased, even though absolute debt remains high. FNS's smoother earnings profile could, in a benign environment, eventually lead to gradual capital accumulation and a stronger equity base.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Oct 7, 2018
Words:198
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