Fitch downgrades WHA

Fitch Ratings said it downgraded WHA Corp. PCL’s national long-term rating and the national long-term rating on its outstanding senior unsecured debentures to BBB+(tha) from A-(tha).

The agency also said it affirmed WHA’s national short-term rating at F2(tha).

The ratings were removed from Rating Watch negative, where they were placed in November 2014.

The outlook is negative.

The downgrades follow news that the company acquired 92.88% of Hemaraj Land and Development PCL, Fitch said.

The downgrades reflect the significant increase in the company’s financial leverage after the acquisition, the agency said. Its consolidated financial leverage is likely to rise significantly in 2015 and 2016 because the final acquisition cost of 41 billion in Thai baht was about 78% financed via an acquisition loan, Fitch said.

The outlook revision considers the uncertainty inherent in the company’s de-leveraging plan, the agency said.

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