Fitch Ratings (Thailand) has assigned a National Long-Term Rating of 'A(tha)' to Asia Sermkij Leasing Public Company Limited's (ASK; A(tha)/Stable) upcoming issue of Thai baht senior unsecured debentures.

The company plans to use the proceeds for debt repayment and working capital.

Key Rating Drivers

The senior unsecured debentures are rated at the same level as ASK's National Long-Term Rating, as they represent the company's unsecured and unsubordinated obligations and rank equally with its other similar obligations.

ASK's ratings reflect Fitch's assessment of extraordinary support from the ultimate controlling shareholder, Taiwan-based Chailease Holding Company Limited (BBB-/Stable). We view ASK as a strategically important subsidiary of Chailease as it has a key role in the parent's business strategy to expand in south-east Asia.

For details on ASK's key rating drivers and sensitivities, see Fitch Affirms Asia Sermkij Leasing at 'A(tha)'/Stable; Upgrades Short-Term Rating to 'F1+(tha)' dated 7 August 2023.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

The rating on the senior unsecured debentures would be downgraded if ASK's National Long-Term Rating is downgraded. This may occur if there were any declines in Chailease's ability or propensity to support ASK, while also taking into account ASK's relative credit profile within the Thai national rating scale.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

An upgrade in ASK's National Long-Term Rating would have a similar effect on the rating of the senior unsecured debentures. For example, there could be rating upside if there is positive action on Chailease's Long-Term Issuer Default Rating (IDR), or if Fitch positively re-assesses ASK's strategic importance to the parent.

Date of Relevant Committee

04 August 2023

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

ASK's National Ratings are linked to Chailease's credit profile, as denoted by the shareholder's Long-Term IDR.

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