TRIS Rating has affirmed the company rating for Thai Airways International Plc (THAI) at “A”, along with ratings on THAI’s outstanding senior unsecured debentures.
The company rating is enhanced by THAI’s stand-alone credit profile based on expectation of the high likelihood of government support due to its status as a state enterprise.
The stand-alone credit profile reflects its position as a leading international passenger airline in Thailand.
The ratings, however, are constrained by rising financial leverage in line with its aircraft acquisition plan and persistently high operating cost. The ratings are also constrained by fuel price fluctuations and event risks that could adversely impact air travel demand.