Fitch rates Siam City Cement debt A(tha)

Fitch Ratings said it assigned Siam City Cement plc an A(tha) national long-term rating and an F1(tha) national short-term rating, along with an A(tha) national long-term rating to its upcoming 4 billion in Thai baht senior unsecured debentures due in 2013. The proceeds will be used for refinancing and working capital.

The outlook is stable.

The ratings reflect the company's solid market position as Thailand's second-largest cement producer, with 26% capacity and 27% market share, Fitch said, as well as vertical integration into aggregates and ready-mixed concrete business.

The ratings are underpinned by its solid financial position with low financial leverage and strong coverage ratio, the agency said.

The ratings also take into account the large supply excess of cement in Thailand with intensified price competition, Fitch added.

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