Tris Rating Affirms BB+/Stable Outlook on CWT as Liquidity Risk Subsides

TRIS Rating removes the “CreditAlert” with “negative” implication and affirms the company rating on Chai Watana Tannery Group PLC (CWT) at “BB+“. At the same time, TRIS Rating assigns a “stable” outlook to the rating.

 

The rating action reflects the easing of the near-term liquidity risk as the company extended the maturity date of the CWT205A debentures and replaced the CWT209A debentures with new debentures.

The “BB+” rating continues to reflect CWT’s volatile margins, high business concentration, execution risks associated with new investments, and a potential surge in debt load. However, the company’s proven track record as a leather tanner, especially in the auto leather business, and the predictable cash flows from the power business help support the rating.