Fitch affirms Aeon Thana Sinsap

Fitch Ratings said it affirmed the national long-term rating of Aeon Thana Sinsap (Thailand) PCL at BBB+(tha) and its national short-term rating at F2(tha).

The ratings reflect the company's niche market position, strong earnings and profitability in retail financing in Thailand, Fitch said, as well as its solid capital position and partial support from a strong foreign parent.

The company's high growth strategy over the last several years has raised concerns on its asset quality, while its delinquency rate has been on an upward trend, the agency said. However, despite the continuing weakness in the operating environment in 2006 and 2007, the rise in delinquencies and provisioning expenses appears to have stabilized, Fitch said.

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