Fitch Affirms AEON Thana Sinsap at #A-(tha)#; Outlook Stable

Stocks and Financial Services Press Releases Monday September 5, 2016 10:19
Bangkok--5 Sep--Fitch Ratings

Fitch Ratings has affirmed AEON Thana Sinsap (Thailand) Public Company Limited's (AEONTS) National Long-Term Rating at 'A-(tha)', with a Stable Outlook. The company's National Short-Term Rating has been affirmed at 'F2(tha)'.


The company's ratings are driven by its standalone profile and reflect its market position as one of Thailand's largest consumer finance companies. AEONTS is focussed on the credit card and personal loan segments and has a nationwide branch presence. Its capitalisation has improved over the past three years due to profit retention, boosting the company's buffers and ability to cope with unexpected downturns.

The ratings also reflect the company' lack of diversification compared with larger financial institutions and continued competitive pressures from non-bank financial institutions and commercial banks. The operating environment remains weak due to Thailand's muted economic growth; increasingly weighing on the company's asset quality. However, these trends are in line with Fitch's expectations.

AEONTS is part of Japan's AEON group and benefits from the group's operational expertise in the consumer-loan sector. Unlike commercial banks, the company does not have a deposit base. However, its funding structure is reasonably diverse compared with other non-banks and includes bank loans, bonds and securitisation transactions.


AEONTS's National Ratings would be affected by substantial changes to its financial profile. Further sustained improvements in capitalisation, revenue diversification and scale could lead to a rating upgrade, though Fitch views this as remote in the short term.

Conversely, a sharp deterioration in the company's capital buffers or an increase in risk appetite that leads to sharply weaker asset-quality could lead to a rating downgrade, as could a large and sustained deterioration in the company's performance.

Latest Press Release

SET appoints EVP in charge of IT development

The Stock Exchange of Thailand (SET) has appointed Pattana Wongnirund as Executive Vice President (EVP), Head of Information Technology Development Group, Information Technology Division, effective August 16, 2020. SET President Pakorn Peetathawatchai...

PTL posts upsurge in Q1 profit

The flexible packaging industry witnessed an increase of 30-40% in demand for PET thin film in Q1. Flexible packaging accounts for approximately 70-75% of PTL revenues. As a result, Polyplex (Thailand) Plc (PTL)’s normalized net profit in Q1...

CEOs: Post-Covid changes are permanent and there are more to come

A new PwC survey of CEOs across the globe looks at the outlook for growth and the impacts of the COVID-19 pandemic on the way businesses operate now and in the future. According to CEOs, shifts towards remote working, automation and low-density offices...

AIA Launches 'AIA Investment Management (Thailand)’ Offering Global Opportunities, Becoming the Third-Largest Investment Management Company with 847 Billion Baht in Assets Under Management

AIA Thailand, a leader in the life assurance and unit linked market in Thailand, is driving the capital market by launching AIA Investment Management (Thailand) Co., Ltd. (AIAIMT) to manage funds under AIA unit linked policies. The company will leverage...

Krungsri Finnovate Reveals Business Strategy for 2H/20

- Creating strategic partnership and investment in startups with high demand and potential growth in post Covid-19 crisis - Strengthening synergy with startups in R&D and futuristic innovation - Investing in “ICON Framework”, one of...

Related Topics