Fitch rates Siam Cement notes A(tha)

Fitch Ratings said assigned a national long-term rating of A(tha) to Siam Cement PCL's new 10 billion in Thai baht unsecured and unsubordinated debenture No. 2/2558 due 2019.

The proceeds will be used to refinance maturing debentures and fund future capital expenditure and investments, Fitch said.

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

The company is one of Thailand's largest conglomerates with three diversified core businesses in cement and building materials, chemicals and packaging, the agency said.

The ratings are supported by the company’s well-diversified sources of revenue from its various businesses, Fitch said.

The ratings also consider its inherent exposure to the cyclicality of the chemicals and packaging businesses, the agency said, and a lack of pricing power because the majority of its products are commodities.

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