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The rating is based entirely on the full, irrevocable and unconditional guarantee provided by Tri Petch's parent, Mitsubishi Corp ('A+'/stable outlook), it said. As Mitsubishi's rating is currently above Thailand's long-term local currency Issuer Default Rating of 'A-', the guaranteed debentures are capped at the sovereign national rating of 'AAA(tha)'.

Fitch said that any rating action that results in Mitsubishi's rating falling below the Thai sovereign rating would affect the debentures' national rating. Investors should note that a one-notch change in an international rating could result in a more than a one-notch change in a national rating.

Mitsubishi's rating reflects its leading position as one of the largest general trading companies in Japan in terms of sales, net profit and total assets, including a sound equity base.

Mitsubishi reported a net profit of ¥369.9 billion (Bt130 billion) in its financial year to March 31, down 21.4 per cent year on year, given the large write-down of market securities as a result of the sharp drop in stock prices and the yen's appreciation leading to lower foreign revenues upon conversion.

However, its operating income rose to a record high of ¥588.9 billion from a significant increase in coal prices. Metal and energy businesses remained key Mitsubishi earnings drivers, while the industrial finance and logistics and development group booked a loss.

Mitsubishi's liquidity is adequate, supported by its cash and cash equivalents and time deposits of ¥1.328 trillion, up 74.4 per cent year on year as a result of fund-raising to secure liquidity during the global economic crisis, Fitch said.

Together with the decrease in profit, Mitsubishi's net debt equity ratio (DER) increased to 1.5 times at end-March, which remained lower than its net DER target of less than two times. However, under the conditions of the gloomy economic outlook and lower global trade resulting in decreased transaction volumes, Mitsubishi forecast a net profit of ¥220 billion in its current year.

 Tri Petch is about 89 per cent owned by the Mitsubishi group and is one of the largest distributors of commercial vehicles in Thailand. The company is primarily involved in automobile-related businesses via its subsidiaries and associates.

It has also maintained a leading position in commercial vehicle sales in the local market, with a share in the pickup vehicle market of around 40 per cent for the first five months of 2009, Fitch said.