RPT-Fitch Rates TMB Bank's EMTN Programme 'BBB-'
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Sept 10 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has assigned TMB Bank Public Company Limited's (TMB: BBB-/Stable) USD3.0bn euro medium-term note (EMTN) programme a senior unsecured rating of 'BBB-'.
Key Rating Drivers
The programme is rated at the same level as TMB's Long-Term Issuer Default Rating (IDR) of 'BBB-' as the notes under the programme are expected to constitute unsecured and unsubordinated obligations of the bank.
TMB's Long-Term IDR is based on its standalone financial strength, which is reflected in its Viability Rating (VR). TMB's VR takes into account the bank's improving profitability before provisions and asset quality, and Fitch's expectations for further improvement in these metrics. The ratings also consider TMB's sound funding and liquidity.
Any change to TMB's Long-Term IDR would have a similar effect on the EMTN programme's rating.
A rating upgrade for TMB is unlikely in the near-term because further improvement in the bank's overall credit profile is expected to be gradual and has been factored into the ratings. The rating could be negatively impacted if the improvement in its financial indicators reverses, if there are growing risks from excessive loan growth or a higher risk appetite without stronger buffers, or if there is a material increase in loan concentration. Any evidence of weakening in TMB's deposit franchise could also result in a negative rating action.
TMB is the seventh-largest commercial bank in Thailand with assets of THB711.6bn at end-June 2013. The major shareholders are ING Bank NV with 30.1% (including 4.9% of non-voting depository receipts) and the Ministry of Finance with 26.1%.
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