TRIS Rating Affirms “A/Stable” Company Rating of “TSFC” and Cancels Issue Rating
TRIS Rating Co., Ltd. has affirmed the company rating of TSFC Securities Ltd. (TSFC) at “A”. At the same time, TRIS Rating has cancelled the rating of TSFC’s up to Bt1,000 million subordinated debentures upon the request of TSFC since the company does not have a plan to issue debentures.
The outlook remains “stable”. The rating reflects TSFC’s capable management team, the ability to sustain its leading market position in margin loans (credit balance financing), sound asset management, and sufficient liquidity. The rating also takes into consideration the good prospects for the stock market in the medium term, which would help support the company’s growth. Although investment in equity (through unit trusts) provides high returns, this asset class contains a degree of market risk. Therefore, performance may be more volatile.
The “stable” outlook is based on the expectation that TSFC will be able to maintain its leading position in the margin loans business. TSFC is expected to maintain an acceptable capital level while expanding its loan portfolio. Most importantly, asset quality is expected to remain good, as TSFC is expected to retain its conservative credit approval and monitoring policies.