Fitch Assigns ’A(tha)’ to Siam Cement’s New Debentures

Fitch Assigns ’A(tha)’ to Siam Cement’s New Debentures
Published: 08 September 2011

Fitch Ratings (Thailand) Limited has today assigned a National Long-Term rating of ’A(tha)’ to The Siam Cement Public Company Limited’s (SCC; ’A(tha)’/Positive/’F1(tha)’) up to THB10.0bn new unsecured and unsubordinated debentures No.2/2011 due 2015. The proceeds will be used to refinance the company’s maturing debentures.

SCC’s ratings reflect diversified cash flow generation from its three core businesses of petrochemical, cement and paper. The ratings are also supported by SCC’s leading position in its businesses in Thailand, extensive and long-established distribution channels, strong brands in the domestic market, and management’s strong track record.

SCC’s credit profile is constrained by the cyclicality of its core businesses and by Thailand’s large excess capacity in cement.