TRIS Rating affirms company rating of TSFC Securities

The rating reflects TSFC’s adequate capital base, ability to maintain business and financial performance as expected, and the financial support its receives from its largest shareholder, the Stock Exchange of Thailand (SET).
However, the rating is constrained by increasing competition in the margin loan business, deteriorating asset quality, and high volatility in the stock market. The rating takes into consideration the company’s limited scope of businesses and ability to achieve the company’s mission. The success of its strategic decision to become a short-term liquidity provider to securities companies has yet to be proved.
TSFC’s major shareholders are the SET, the Ministry of Finance (MOF), and the Government Savings Bank (GSB). The SET is the largest shareholder, owning a 40.65 per cent stake.