Fitch rates Siam Cement notes A(tha)

Fitch Ratings said it assigned a national long-term rating of A(tha) to Siam Cement PCL's issue of up to 25 billion in Thai baht unsecured and unsubordinated debentures No. 2/2012 due 2016.

The proceeds will be used to refinance the company's maturing debentures and fund future capital expenditures, Fitch said.

The company has A(tha)and F1(tha) ratings and a stable outlook.

The ratings are underpinned by its well-diversified revenue sources from its chemical, cement, paper and building material businesses, Fitch said.

The company's leading position in the domestic cement and paper businesses should support cash flow generation as the operating environment for chemicals remains difficult in 2012, the agency said.

The ratings are constrained by its exposure to the cyclicality of the chemical and paper sectors, Fitch added.

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