Fitch affirms Finansa

Fitch Ratings said it affirmed the national short-term rating of F2(tha) of Finansa plc's bill of exchange program of up to 1 billion in Thai baht with a maturity of up to 270 days.

The rating is based on the creditworthiness of the company, which has a national long-term rating of BBB(tha) with negative outlook and short-term rating of F3(tha), along with the credit enhancement from the 50% principal guarantee by the Netherlands Development Finance Co., the agency said.

The ratings reflect the company's financial holding company structure, its revenue diversification and its adequate capital, Fitch said.

However, the ratings also take into account its lack of a strong financial institutional shareholder, its exposure to market, credit and liquidity risks, as well as its dependence on volatile brokerage earnings and investments, the agency said.

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