Fitch affirms Siam City Cement's rating, Thailand

Fitch Ratings (Thailand) Limited has affirmed Siam City Cement Public Company Limited's (SCCC) National Ratings at Long-Term 'A(tha)' and Short-Term 'F1(tha)'. The Outlook is Stable. At the same time, Fitch has affirmed SCCC's senior unsecured debentures at 'A(tha)'.

SCCC's ratings reflect its leading position as the second-largest cement producer in Thailand, with strong brands in cement, ready-mix concrete and wood replacement products. This has helped the company to maintain its domestic cement market share at about 27% in the past 10 years. Moreover, one of its majority shareholders, Holcim Ltd (Holcim; 'BBB'/Stable), provides operational support and a strong global marketing network, helping to underpin SCCC's exports.

“The company's cost saving measures such as increasing usage of alternative fuel, waste heat generators and machine efficiency improvement could partly ease the pressure from rising energy costs,” Fitch said in a statement.