TRIS Rating has upgraded the company rating on Double A (1991) PLC (DA) and the ratings on its outstanding senior unsecured debentures to “BBB+” from “BBB”. The credit rating firm also revised the rating outlook to “stable” from “positive”.
The rating upgrade is attributed to DA’s strengthened credit metrics, following a steady decrease in its debt burden. At the same time, the agency assigned a rating of “BBB+” to DA’s proposed issue of up to THB3 billion senior unsecured debentures, with a tenor of up to 10 years. The proceeds are intended for repayment of maturing debt and/or use in business operations.
The ratings reflect DA’s strength as a top office paper producer worldwide, the strong “Double A” brand, and its fully integrated operations. These strengths are partly offset by long-term stagnation in paper demand and the inherent cyclicality of the pulp and paper industry.
TRIS Rating assessed DA’s liquidity position as adequate. As of June 2025, DA had THB 5.2 billion debt coming due in the next 12 months, including THB 2.4 billion debentures. Meanwhile, sources of liquidity included cash and marketable securities of about THB 4 billion and unused credit facilities of THB 1.5 billion. Inclusive of the new debenture issuance of THB 3 billion in July 2025, sources of liquidity should cover all the maturing debts.
A key financial covenant on DA’s debentures requires the company’s net interest-bearing debt to equity ratio to stay below 2 times. The ratio as of 30 June 2025 was 0.9 times. The rating agency expects the company to remain compliant with this financial covenant for at least the next 12-18 months.
Additionally, the “stable” outlook reflects TRIS Rating’s expectation that DA will maintain its robust market position and deliver satisfactory operating performance while carrying on its conservative financial policy, which should result in its earnings and outstanding debt aligning with the forecast.
