TRIS Rating on October 26, 2020, upgraded the company rating on Sri Trang Agro-Industry Public Company Limited (STA) and the rating on STA’s senior unsecured debenture to “A-” from “BBB+” and revises the rating outlook to “stable” from “negative”.
The upgrade reflects STA’s strengthened financial profile following the initial public offering (IPO) of Sri Trang Gloves (Thailand) (STGT) on the Stock Exchange of Thailand (SET) in July 2020, and Tris Rating’s expectation of an improvement in the company’s operating performance in the next few years.
The ratings continue to reflect STA’s leading position in the natural rubber (NR) industry, its competitive edge in vertical integration, and the strong track record of the management team. However, STA’s business profile is constrained by the cyclical and volatile nature of NR prices as well as the challenges the NR industry is facing amid a weak and highly uncertain global economy.
STA closed the day with a drop of ฿0.25/share or 0.78% to ฿32.00/share with a trading value of 953 million baht.
SET Index closed at 1,207.97 points, decreased 5.64 points or 0.46% with a trading value of 41.5 billion baht.