Siam Cement’s Fitch rating raised to A+

Fitch also assigned the company’s new senior unsecured debentures of up to Bt30 billion due 2022 a national long-term rating of “A+”. 
The debenture proceeds will be used to refinance existing debt and fund the company’s capex and investments. 
The notes are rated at the same level as SCC’s national long-term rating because they constitute the direct, unsecured, unconditional and unsubordinated obligations of the company. 
The rating upgrade reflects the benefits of having diverse businesses, from cement and building materials to chemicals, and its financial profile improvement. 
The strength of the chemicals business, combined with lower capex, has led to a significant financial profile improvement over the last few years. 
Fitch expects this to be maintained, and should the company commit to a large chemicals investment.
It believes the “A+” rating can accommodate a continued strong credit profile with a leverage peak at around three times.