TRIS Rating Company Limited has affirmed Thai Airways International Public Company Limited’s (THAI) company rating and the ratings of its existing senior debentures at “A+”. At the same time, TRIS Rating has assigned the ratings of “A+” for THAI’s THB 2,000 million senior debenture issued in December 2011 and the proposed issuance of up to THB 3,000 million senior debentures.
Mr. Piyasvasti Amranand, THAI President, said that the ratings reflect the leading position of THAI in airline business on the routes in and out of Thailand and the benefits derived as a member of Star Alliance, which is the largest airline alliance in the world. However, these strengths are partially offset by its relatively high leverage and exposure to fuel price volatility, foreign exchange risk, and event risk such as epidemics, natural disasters, and Middle East political unrest. In addition, intense competition from both premium and low-cost carriers will continue to constrain the revenue per passenger-kilometer in the short to medium term.
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Source: Thai Airways
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