Fitch Ratings (Thailand) Limited has upgraded the National Long-Term Rating of FNS Holdings Public Company Limited to 'CCC+(tha)' from 'CCC-(tha)'. We have also affirmed its National Short-Term Rating at 'C(tha)'. Simultaneously, Fitch has withdrawn the ratings.
The upgrade reflects reduction in refinancing risk after FNS successfully redeemed its debentures in October 2025. The rating reflects FNS's tight liquidity, as Fitch expects its wellness business to operate with negative cash flow for at least the next 24 months, while FNS has limited access to new funding and must rely on related companies to repay loans and its limited cash balance.
Fitch has chosen to withdraw the ratings for commercial reasons.
Key Rating Drivers
Refinancing Risk Alleviated: FNS's bond redemption in October 2025 has reduced its refinancing risk. At end-September 2025, FNS had only secured short-term borrowings from financial institutions totaling THB123.3 million, with its shares in M.K. Real Estate Development Public Company Limited (MK) pledged as collateral. Fitch expects FNS to roll over the secured debts.
Tight Liquidity on Negative FCF: Fitch expects FNS's liquidity to remain tight, with negative free cash flow (FCF) for at least the next 24 months due to its wellness business. The business is in its early stages, and access to new funding is limited. FNS is therefore likely to rely on loan recoveries from MK, which also has tight liquidity, to fund the negative FCF. FNS's alternative source of funding is the divestment of non-core assets, which carries execution risk.
Limited Operating Scale: FNS's credit profile is constrained by its small operating scale. It focuses on two wellness projects: RAKxa Integrative Wellness and RXV Wellness Village. RAKxa, launched in 2020, targets high-end foreign guests, while RXV, opened in 2023, offers more affordable packages to domestic individual and corporate customers, and foreign guests. Both projects have occupancy rates below their cash flow breakeven levels, but FNS expects to reach this level in the next 12 months. The company plans to increase occupancy rates by attracting a larger pool of guests and encouraging repeat visits.
Support to MK Unlikely: Following FNS's reduction of its stake in MK and deconsolidation of its financials, Fitch expects FNS will no longer provide financial support to MK. MK plans to source funds independently of FNS to meet its high refinancing needs in the next 12 months. FNS will focus on improving the performance of its wellness business, which still has negative operating cash flow and limits FNS's ability to provide financial support to MK.
Modest Capex and Investment: We forecast that FNS's capex and investment requirements will remain modest over the medium term. This is based on our belief that FNS will focus on the performance turnaround of the existing two wellness projects before embarking on business expansion or new investments. As a result, FNS will incur only minimal maintenance capex over the medium term.
Doubts Raised by Auditor: FNS's independent auditor issued an opinion with an emphasis of matter on material uncertainty related to FNS as a going concern in its audit report on the company's financial statements for the nine month ended 30 September 2025. FNS reported consecutive net losses in 2024 and 2025. Its current liabilities exceeded its current assets, excluding short-term loans to related parties, by THB0.5 billion, which casts significant doubt on the company's ability to continue as a going concern.
Peer Analysis
FNS's rating is significantly lower than that of rated peers in Thailand and is driven by its tight liquidity and limited operating scale.
Fitch's Key Rating-Case Assumptions
Fitch's Key Assumptions within Our Rating Case for the Issuer
- FNS to focus on its health and wellness business;
- FCF to remain negative in 2025-2027;
- No major capex in 2025-2027;
- No dividend payments in 2025-2027.
RATING SENSITIVITIES
No longer relevant, as the ratings have been withdrawn.
Liquidity and Debt Structure
FNS's liquidity remains tight, as Fitch estimates negative FCF totaling THB274 million during 2026-2027. FNS may have insufficient liquidity to sustain its operations in the absence of additional repayment of loans from MK, additional borrowings from financial institutions or sales of non-core assets.
Issuer Profile
FNS is a holding company with investments in a variety of businesses. Its primary investments are in the wellness sector, where it holds a 100% stake in RX Wellness Ltd, and in the property and real-estate sector, where it holds a 36.6% stake in MK. Its other investments include a bakery chain, and small start-up businesses.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Click here to access Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in our credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included.
Additional information is available on www.fitchratings.com
ไทยถูกปรับ Credit rating outlook ลงมาเป็นลบ กดดันเงินบาทอ่อนค่า SCB FM มองเงินบาทในกรอบ 31.00-32.00 บาทต่อดอลลาร์ ปลายปี