TRIS Rating Upgrades Company and B/E Ratings of “SCBL” to “A+” from “A-” and Upgrades SCBL’s Debenture Ratings to “AA” from “A-”
TRIS Rating Co., Ltd. has upgraded the company rating of Siam Commercial Leasing PCL (SCBL, formerly known as Siam Panich Leasing PLC (SPL)) and the rating of SCBL’s bills of exchange (B/E) to “A+” from “A-”. At the same time, TRIS Rating has upgraded the ratings of SCBL’s existing debentures to “AA” from “A-” as a consequence of the guarantee received from its parent, Siam Commercial Bank PCL (SCB). The rating outlook is “stable”.
SCBL’s guaranteed debenture ratings reflect credit profile of SCB, the 96.83% shareholder of SCBL and the guarantor for SCBL’s debentures. SCB’s credit rating is supported by its strong market position as the third largest commercial banks in Thailand with a strong operating branch network nationwide, its improving financial and business performance, its sound and experienced management team, and its strong cushion of capital fund and allowance for loan loss against bad debts.
SCB’s rating, however, is partly constrained by less favorable operating environment, uncertainty in the securities industry, intensifying competition in consumer and retail finance industry, which might limit the bank’s overall growth prospects and profitability.