Fitch Ratings (Thailand) has assigned a National Long-Term Rating of ‘AA(tha)’ to EASY BUY Public Company Limited’s (EB; AA(tha)/Stable) upcoming issue of Thai baht senior unsecured bonds. The bonds will have a tenor of up to three years.
KEY RATING DRIVERS
The bonds are rated at the same level as EB’s National Long-Term Rating as they represent the company’s unsubordinated and unsecured obligations.
EB’s National Ratings are driven by Fitch’s view that it is a strategically important subsidiary of ACOM CO., LTD. (BBB+/Stable). ACOM owns 71% of EB, and there is a significant level of management control and operational integration. EB also benefits from the parent’s know-how and risk management expertise in the consumer finance segment.
ACOM is a subsidiary of Mitsubishi UFJ Financial Group, Inc. (MUFG, A-/Stable), and has a strategic role within the group as one of Japan’s leading providers of consumer-finance services.
For further details of EB’s rating drivers and sensitivities, please see Fitch Affirms EASY BUY at ‘AA(tha)’; Outlook Stable, dated 19 May 2022.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
Negative action on EB’s National Long-Term Rating would result in similar rating action on its senior debt.
This may arise from a decline in ACOM’s ability or propensity to support the Thai subsidiary, while also taking into account the company’s credit profile compared to other entities rated on the Thai national rating scale.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
An upgrade of EB’s National Long-Term Rating would result in a similar rating action on its senior debt rating.
DATE OF RELEVANT COMMITTEE
19 May 2022
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
EB’s ratings are linked to the credit profile of ACOM as indicated by its Long-Term IDR.
Additional information is available on www.fitchratings.com