Fitch rates Siam Cement notes A(tha)

Fitch Ratings (Thailand) Ltd. said it assigned Siam Cement PCL's new unsecured and unsubordinated debentures No. 2/2013 due 2017 of up to 20 billion in Thai baht a national long-term rating of A(tha).

The proceeds will be used to refinance debt and fund future capex.

The notes are rated at the same level as Siam Cement's national long-term rating as they constitute direct, unsecured, unconditional and unsubordinated obligations of the company.

Fitch said the ratings reflect the company's well-diversified business, which helps support cash flow generation, particularly during the difficult operating period of its chemical unit in the past two years. Increased earnings in cement and packaging paper businesses are likely to help reduce the impact from the cyclicality of chemical business in the medium term, the agency added.

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