Fitch Affirms Thailand#s Finansia Syrus at #BBB+(tha)#; Outlook Stable

Stocks and Financial Services Press Releases Thursday July 12, 2018 15:31
Bangkok--12 Jul--Fitch Ratings

Fitch Ratings-Bangkok-12 July 2018: Fitch Ratings (Thailand) has affirmed Finansia Syrus Securities Public Company Limited's (FSS) National Long-Term Rating at 'BBB+(tha)' with a Stable Outlook, and its National Short-Term Rating at 'F2(tha)'.


The National Ratings reflect FSS's moderate business profile, limited diversification and dependence on retail brokerage income. The ratings are supported by the firm's sound capitalisation and liquidity buffers, which allow FSS to withstand downside risks.

Fitch expects FSS's profitability to remain on par the industry average over the medium term. The company has shown an ability to maintain a comparable brokerage commission fee with the market amid heavy competition. However, volatile trading volume will pressure profitability in light of FSS's high operating cost structure, thin operating margin and capital expenditure requirements.

FSS has maintained a stable market presence in its core segment of retail brokerage. More than 68% of its total revenue is generated from securities brokerage commissions, compared with the 55% industry average. The firm's business strategy could increase the diversity of its revenue base and the quality of its earnings, but Fitch believes there are significant execution risks.

The company has sound capitalisation that is comparable with local peers, as evident from its lower asset/equity ratio of 2.3x, against the industry's 3.9x, at end-2017. The agency believes current capital would enable FSS to buffer moderate downside risks in the medium term.

A significant reduction in profitability or significantly higher risk profile and risky-asset growth that deviate from industry trends, all over a sustained period, could trigger negative rating action.
The National Ratings could be upgraded if FSS improves its key financial metrics through the industry cycle, while keeping its risk profile and business franchise relatively constant.

Latest Press Release

Fitch Affirms Standard Chartered Bank (Thai) at #A-#; Outlook Stable

Fitch Ratings has affirmed Standard Chartered Bank (Thai) Public Company Limited's (SCBT) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'A-' with a Stable Outlook. At the same time, the agency has affirmed SCBT's National...

Photo Release: KBank recognized as having the highest corporate brand value in the banking business category 2nd consecutive year

At Sukree Kaewcharoen Auditorium, the Stock Exchange of Thailand (SET), Ms. Kattiya Indaravijaya, KBank President, recently represented KBank to receive the "Thailand's Top Corporate Brand Values 2018" award in the banking business category from...

MicroBitcoin Open Source Community เซ็นสัญญากับสมาพันธ์แรงงานในเกาหลี เปิดโอกาสให้แรงงาน 1.5 ล้านคนได้ใช้เงินดิจิทัล

MicroBitcoin Open Source Community เซ็นสัญญากับสมาพันธ์แรงงาน Korea Association of Care Workers (KACW) เพื่อนำสกุลเงินดิจิทัล MicroBitcoin มาใช้ สัญญานี้ลงนามร่วมกันสามฝ่าย ได้แก่ MicroBitcoin Open Source Community, KACW และ Bluequotient...

MicroBitcoin Open Source Community Signs an Exclusive Contract with the Korea Association of Care Workers (KACW) to Expand its Usability to One and a Half Million Users

The MicroBitcoin Open Source Community has signed a contract with Korea Association of Care Workers (KACW) to adapt the MicroBitcoin blockchain network protocol. The trilateral contract was made between the MicroBitcoin Open Source Community, the Korea...

WICE establishes a joint-venture, EUROASIA TOTAL LOGISTICS, with its holding 40% of shares to provide cross-border transport services between China, Hong Kong

WICE establishes a joint-venture, "EUROASIA TOTAL LOGISTICS", with its holding 40% of shares to provide cross-border transport services between China, Hong Kong, and South East Asia with the expectation to achieve the first year's revenue at 200 million...

Related Topics