Fitch Assigns First-Time 'AAA(tha)' to JWD InfoLogistics's Guaranteed Bond Programme

Fitch Ratings (Thailand) Limited has assigned a first-time National Long-Term Rating of 'AAA(tha)' to JWD InfoLogistics Public Company Limited's (JWD, BBB(tha)/Negative) proposed bond programme of up to THBthe programme.9 billion. The scheduled payments of interest and principal of the bonds issued under the programme will be unconditionally and irrevocably guaranteed by Credit Guarantee and Investment Facility (CGIF).

KEY RATING DRIVERS
Guarantee from CGIF: The rating on the proposed bond programme is based solely on the unconditional and irrevocable guarantee of scheduled payments of interest and principal provided by CGIF. CGIF's payment obligations under the guarantee rank pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law (if any). In Fitch's view CGIF's credit profile is stronger than Thailand's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'BBB+', which is equivalent to 'AAA(tha)' on the National rating scale. The bonds programme is, therefore, rated 'AAA(tha)'.

Risk from Acceleration: The bondholders' representative may demand payment under the guarantee only upon the occurrence of a non-payment event under the bonds. The bondholders' representative has the right to accelerate the bond payments against the issuer JWD upon an occurrence of any event of default. However, if the bondholder representative exercises this right, CGIF will no longer be obligated to make payments under the guarantee.

Currency Risk: There exists the risk that the bondholders may not receive payment in Thai baht under the guarantee, if the guarantor determines that it is impossible or impracticable or that it is unable on commercially reasonable terms and in accordance with its policy to obtain Thai baht to fund the bond payment. In this event, CGIF may make the payment with an equivalent amount in a substitute currency, which could be the US dollar or other currency as the guarantor may determine. In such an instance CGIF would notify the bondholders' representative before the payment date.

DERIVATION SUMMARY
The rating on the bond programme is driven solely by the unconditional and irrevocable guarantee provided by CGIF.

RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:

  • No positive action is expected as the rating is at the highest possible on the National rating scale

Factors that could, individually or collectively, lead to negative rating action/downgrade:

  • Deterioration in CGIF's credit profile relative to Thailand's Long-Term Foreign-Currency IDR.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
The rating on JWD's guaranteed bond programme is driven solely by the unconditional and irrevocable guarantee provided by CGIF.

Additional information is available on www.fitchratings.com


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