TRIS Rating Affirms Company Rating on SAWAD at BBB and Assigns BBB ryt9.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from ryt9.com Daily Mail and Mail on Sunday newspapers.
TRIS Rating affirms the company rating on Srisawad Corporation PLC (SAWAD) at ?BBB+? with a ?stable? outlook. The rating reflects the company?s strong market presence in the title loan business; very strong capital, leverage, and earnings assessment; and adequate funding and liquidity profile. However, the rating is constrained by the fragile economic environment, intensifying competition, and the company?s relatively high exposure to risky property-backed loans.
KEY RATING CONSIDERATIONS
Strong market presence maintained
The company?s strong market presence as one of the major operators in the title loan business continues to support its business position. We expect the company?s market position to remain strong, despite stagnant loan growth in 2020 and the first quarter of 2021. The slower credit growth momentum stemmed from the adverse impacts of the Coronavirus Disease 2019 (COVID-19) pandemic. In the longer term, we expect the company?s loan growth will continue to be driven