Fitch rates Siam City Cement notes A(tha)

Fitch Ratings said it assigned national long-term ratings of A(tha) to Siam City Cement PCL's two tranches of unsecured and unsubordinated debentures.

The bonds are rated at the same level as the company's national long-term rating as they constitute direct, unconditional, unsecured and unsubordinated obligations, Fitch said.

The proceeds will be used to refinance the company's maturing debentures and fund future capital expenditure.

The tranches comprised of up to 4 billion in Thai baht unsecured and unsubordinated debentures due 2017 and up to 2 billion in Thai baht unsecured and unsubordinated debentures due 2020.

The ratings reflect the company's solid domestic demand and leading market position as the second-largest cement and ready-mix concrete producer in Thailand, Fitch said.

This has helped maintain reasonable EBITDA and EBITDA margin despite pressure from price competition and higher energy costs in the past five years, the agency said.

The ratings are constrained by the lack of geographical diversification, Fitch said.

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