Fitch Assigns Asia Sermkij Leasing First-Time A(tha) National Long-Term Rating; Outlook Stable
Key Rating Drivers Thailand-based ASK‘s National Long-Term Rating reflects Fitch‘s assessment of extraordinary support from the ultimate controlling shareholder, Taiwan-based Chailease Holding Company Limited (BBB- /Stable). Fitch believes that ASK is a strategically important subsidiary of Chailease. ASK plays an important role in supporting Chailease‘s expansion in south-east Asia. The Chailease group owns 50.4% of ASK and there is a significant level of management control and operational integration. The parent group has been supporting ASK‘s funding, and contributed to ASK‘s capital increase in 2021, while ASK has used the parent‘s know-how and risk management expertise in the vehicle finance and leasing segment. Chailease became ASK‘s major shareholder in 1997. The Thai company has an established presence in the local hire purchase market, particularly for trucks. ASK has sustained a record of sound profitability and steady asset quality despite the challenging market conditions during the coronavirus pandemic.The pretax net income/average assets ratio was 3.1% in 1Q22, while the impaired loans ratio was 2.6%. For details on Chailease‘s rating drivers and sensitivities, see our latest rating action commentary "FitchAffirms Chailease Group‘s Ratings; Outlook Stable", dated 28 October 2021.
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