Fitch rates Siam Cement notes A+(tha)

Fitch Ratings said it assigned a national long-term rating of A+(tha) to the Siam Cement PCL's new 15 billion in Thai baht unsecured and unsubordinated debentures due 2023.

The proceeds will be used to refinance maturing debentures, Fitch said.

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, the agency said.

Although Fitch said it believes the company has some flexibility to adjust its uncommitted investments, a significant increase in capital expenditure and investment beyond expectation could have a negative rating impact.

The ratings are supported by the diverse sources of revenue from its core businesses, the agency said, along with its leading market position.

The ratings also consider the company's inherent exposure to the cyclicality of the chemicals business, Fitch said.

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