IN Brief : BAY ratings upgraded

IN Brief : BAY ratings upgraded.

BANKING :Fitch Ratings has upgraded Bank of Ayudhya's long-term foreign currency issuer default rating to BBB- from BB+. The short-term foreign currency rating was also upgraded to F3 from B, the foreign currency subordinated debt rating to BB+ from BB and the individual rating to C/D from D. The support rating was affirmed at 3, with the outlook stable.

The upgrades follow the completion of the acquisition by GE Capital International Holdings Corp of a 29% stake in BAY.

GE also has the right to purchase an additional 609 million shares of BAY over the next five years. The initial capital injection of 27.8 billion baht is expected to increase BAY's Tier 1 capital ratio to about 13.7% from 7.8% at end-September 2006, although additional provisioning could result in the level falling again.

BAY shares closed yesterday on the SET at 17.20 baht, up 50 satang, in trade worth 177.04 million baht.

SCBT rating upgraded

BANKING :Fitch Ratings yesterday upgraded the individual rating of Standard Chartered Bank (Thai) to B/C from C.

Fitch said the upgrade reflected SCBT's strong revenue, profitability and capital positions, although the agency notes that its high exposure to unsecured consumer finance could result in greater volatility in asset quality and profitability.

SCBT also faces a tougher operating environment in 2007 which could increase its provisioning costs. The bank's rating is based on UK-based Standard Chartered Bank remaining the major shareholder.

Fuel prices decline

PETROLEUM :Local oil companies today are reducing all retail fuel prices by 40 satang per litre in line with the declining global oil prices. The new price of Octane 95 gasoline is 25.59 baht per litre, Octane 91 gasoline is 24.79 baht, gasohol 95 is 24.09 baht, and diesel is 22.54 baht.

Gift fair in April

EXHIBITIONS :The Bangkok International Gift Fair and Bangkok International Houseware Fair (BIG & BIH) will be held from April 17-22 at Impact Muang Thong Thani.

The gift and home decorative items exhibition, organised by the Export Promotion Department, will cover 50,000 square metres of space and is expected to attract up to 100,000 visitors.

Rachane Pojchanasuntorn, the director-general of the department, said the fair was expected to help boost exports from the sector this year by 10% over last year and help strengthen Thailand's position as a leading production and export centre in the region.

The exhibition is expected to attract 1,000 companies and 2,500 booths, including manufacturers from Laos, Vietnam, India, Hong Kong, Nepal, Cambodia and Ghana. For further information, see http://www.depthai.go.th

DHL appointment

LOGISTICS :DHL has appointed Herbert Vongpusanachai, the country manager of DHL Express Thailand, as DHL Express's Indochina region manager.

The appointment highlights the company's plan to consolidate its position as the market leader in the Indochina region, according to Yasmin Aladad Khan, senior vice-president of DHL Express Southeast Asia. Mr Herbert will be based in Thailand.

Ceva-GM pact

LOGISTICS :Ceva Logistics, formerly TNT Logistics, has expanded its activities with General Motors outside the United States with announcement of a new contract with General Motors (Thailand) Ltd.

Matthew Stimpson, business development director for Ceva, said the contract was the first logistics contract between the two parties. It will involve the collection of components from suppliers for delivery to General Motors' plant in Rayong.

Motorola recruits Becks

COMMUNICATIONS :Motorola Thailand has introduced its Motogoal marketing campaign featuring Motorola's new global brand ambassador, David Beckham.

The former England captain, who will join the LA Galaxy in August, has embarked on a three-year collaboration with Motorola to support sales of Motorola handsets.

In Thailand, the campaign will focus on the Motorola W-Series models: the W208, W220 and W375.

The highlight of the Motogoal campaign is a draw with a package tour for two to England as the top prize. The package is valued at more than 500,000 baht. Runner-up prizes include 500 Beckham-autographed footballs and 1,000 autographed phone-holders.

9-day bills yield 4.98%

DEBT MARKET :The Bank of Thailand yesterday auctioned 30 billion baht worth of nine-day bills for a weighted average accepted yield of 4.98081%. Accepted bid yields ranged from 4.958% to 4.989%, with the bid coverage ratio 1.77 times.

Bangkok Post
Sunday January 14, 2007