Fitch affirms Siam City Cement

Fitch Ratings said it affirmed Siam City Cement PCL's national long-term rating at A(tha) and short-term rating at F1(tha), along with its senior unsecured debentures at A(tha).

The outlook is stable.

The ratings continue to reflect its leading position as the second-largest cement producer in Thailand with strong brands in cement, ready-mixed concrete and wood replacement products, the agency said, as well as its stable domestic market share of about 27% in the past 10 years.

The operational support and strong marketing network of one of majority shareholders, Holcim Ltd., also helps strengthen the company's exports, Fitch said.

The ratings are constrained by large excess cement capacity in Thailand and the resultant occasional price competition that could undermine the company's profit margin, the agency added.

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