TRIS Rating Affirms Company and Issue Ratings of “TUF” at “A+/Stable”
TRIS Rating Co., Ltd. has affirmed the company and issue ratings of Thai Union Frozen Products PLC (TUF) at “A+” with “stable” outlook. The ratings reflect the company’s strong market position as one of the world’s leading tuna processors, its solid valuable “Chicken of the Sea” canned tuna brand, and the management team’s proven track record in the seafood export business.
The ratings also take into consideration the company’s conservative business expansion policy, as well as its product and geographic diversity. These factors are partially offset by the maturity of the canned tuna industry in the US, high exposure to tuna price fluctuations, and threats from manufacturers in low-cost countries, as well as the implementation of import trade barriers by major trading countries, and the fluctuation of the Thai baht.
The “stable” outlook reflects TRIS Rating’s view that TUF will continue to maintain its competitive strength through economies of scale and production efficiency, expand business operations in a conservative manner, and reduce its financial leverage in the intermediate term.