TSFC boosts capital after credit rating cut
TSFC Securities is in talk with its shareholders for fund mobilisation after TRIS Rating CoLtd downgraded its credit rating from A to BBB on deteriorating capital and investment losses.
TSFC, 10 per cent owned by the Finance Ministry and 90 per cent by the Stock Exchange of Thailand (SET), commercial banks and broker firms, is a margin loan service provider.
"The stock market's sharp fall in the past 1-2 months caused TSFC's investment loss. Its capital then is relatively low. The Securities and Exchange Commission has ordered it to solve the problem and the company is negotiating with its shareholders to raise fund," SEC Secretary General Thirachai said in a statement.
"For those who borrow margin loan from TSFC, they shouldn't be worried as the company is committed to the borrowing agreement with customers. They will not be forced to sell shares for immediate debt repayments. If customers want to switch to brokerage houses for margin loans, they can do so."
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