Fitch rating agency gives Siam Cement debentures an A plus

Business Materials 22 February 2008 09:06 (UTC +04:00)

( dpa ) - Fitch Ratings Ltd on Friday assigned an A-plus rating to Siam Cement Public Co Ltd's (SCC's) new unsecured and unsubordinated debentures amounting up to 20 billion baht (615 million dollars).

The new debentures, due in 2012, would be used to refinance the company's maturing debentures as well as to invest in new projects.

"The rating is based on SCC's good revenue diversification, its leading position, extensive distribution channels and strong brand recognition in the domestic market," Fitch Ratings said.

According to Fitch's national rating structure the highest rating is AAA, followed by AA plus, AA, A plus, A, BBB, BB plus, BB, B plus and B. "A single A plus is considered a strong credit rating," a Fitch spokesman said.

Siam Cement - Thailand's leading industrial conglomerate, which is involved in chemicals, paper, cement, building products and distribution - was founded by Thai King Vajiravudh, also known as Rama VI, in the early 1900s and is now partly owned by the Crown Property Bureau, the investment arm of the Thai monarchy.

In 2007, the company's net sales increased by 3.7 per cent from 2006, thanks to strong petrochemical prices while its pre-dividend income declined by 16 per cent to 38.7 billion baht (1.2 billion dollars), noted Fitch, a leading credit rating agency.