Minor International Public Company Limited (“MINT”) is pleased to announce that TRIS Rating (“TRIS”) revised the rating outlook on MINT to “stable” from “negative”. The outlook revision reflects TRIS’ easing concerns over the impact from COVID-19 and expectation in MINT’s strong recovery of operating results over the coming quarters given the lifting of pandemic-led travel restrictions and gradual return to social and economic normalcy worldwide. TRIS expects MINT to steadily improve its credit metrics and have adequate liquidity over the next 12 months despite pressure from macroeconomic uncertainty, supported by a firmer operational revival.
TRIS affirmed the company rating on MINT and its existing senior unsecured debentures at “A” and the rating on its subordinated perpetual debentures (hybrid debentures, MINT18PA) at “BBB+”. MINT's strong business fundamentals from strong brand portfolio, geographic diversification and declining financial leverage underpinned TRIS’ affirmation of the rating.
“We are delighted by TRIS’s rating outlook revision on MINT,” commented Chaiyapat Paitoon, CFO of Minor International. “Earlier, Fitch Ratings also upgraded NH Hotel Group’s rating and outlook. Strong pent-up demand for leisure travel and the return of corporate travel demand have led hotel performance in our key regions, including Europe, the Maldives and Australia, to already reach the pre-pandemic level. Operating environment of food business in Thailand and Australia has improved with normalisation of operating hours and dine-in seating capacity while we expect a V-shape sales recovery in China once the lockdowns end,”
“Furthermore, our balance sheet has been strengthened with the leverage ratio brought down to well below the debt covenant threshold, albeit with a debt covenant waiver until the end of 2022. MINT’s liquidity position also remains healthy with ample cash on hand, working capital facilities and operating cash flows from promising business activity recovery.”
