Fitch affirms Finansa Public

Fitch Ratings said it affirmed Finansa Public Co. Ltd.'s national ratings at long-term BBB(tha) with stable outlook and short-term F3(tha), despite the Bank of Thailand's earlier rejection of a banking application submitted by Finansa's finance subsidiary Finansa Credit.

As a result of the rejection, the proposed merger between Finansa Credit and Bangkok First Investment and Trust has been shelved, the agency said.

The ratings reflect Finansa's financial holding company structure, revenue diversification and adequate capital and liquidity positions, but also take into account its lack of a strong financial institutional shareholder, exposure to market and credit risks and its dependence on volatile brokerage earnings, investments and proprietary trading, Fitch noted.

Finansa's lack of support from a strong financial institutional shareholder makes it more vulnerable to event risk such as the recent license rejection or periods of market volatility, Fitch added.

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