Fitch rates Kim Eng program F1(tha)

Fitch Ratings said it assigned an F1(tha) national short-term rating to Kim Eng Securities (Thailand) PCL's up to 2 billion Thai baht bill of exchange revolving program.

The program will mature in March 2011 and the proceeds will be used to fund growth in margin lending, derivative warrants and for working capital purposes, Fitch said.

The rating takes into account the company's solid brokerage franchise in the Thai market, strong support from its parent, Kim Eng Holdings Ltd. of Singapore, and its strong capital and liquidity positions, the agency said.

The company also maintains a conservative strategy with less exposure to higher-risk and volatile businesses, which has helped stabilize its performance through the cycle, Fitch said.

Meanwhile, market risks appear moderate with relatively small proprietary trading, although the agency noted that its launch of derivative warrants has increased its risk profile, the agency said.

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