TRIS also assigned an “A-” rating to the listed firm’s proposed issuance of up to Bt4 billion in senior unsecured debentures.

The ratings reflect Ratchthani Leasing’s business profile, underpinned by sustained improvements in market position and financial performance, the ratings company said.

They also reflect the extensive experience that its management team has in financing used cars and commercial trucks, plus the continuous improvements the company has made in its operating processes and risk-management systems, TRIS added.

The ratings have taken into consideration the business and financial support Ratchthani Leasing receives from its major shareholder, Thanachart Bank.

They are enhanced from Ratchthani Leasing’s stand-alone rating because TRIS holds the view that the company is a strategically important subsidiary of the bank.

However, the strengths are weighted down by concerns over intense competition and a heavy reliance on the income from loans for commercial trucks, TRIS said.