(Repeat for additional subscribers)
April 2 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has assigned Siam Commercial Bank Public Company Limited's (SCB; BBB+/Stable) proposed US dollar senior unsecured notes, issued under its USD3.5bn medium-term note (MTN) programme, an expected 'BBB+(EXP)' rating.
The notes will be issued by SCB's Cayman Islands branch. The bank plans to use the proceeds for general corporate purposes and to meet the funding requirements of the bank.
The final rating is subject to the receipt of final documentation conforming to information already received.
KEY RATING DRIVERS
The notes are rated at the same level as SCB's Long-Term Foreign-Currency Issuer Default Rating (IDR) and the rating on its MTN programme of 'BBB+'. The notes represent unsecured and unsubordinated obligations of the bank.
SCB's IDR reflects its stand-alone credit strength. SCB is Thailand's second-largest commercial bank by assets as of December 2013, and it has sound profitability and capitalisation.
The rating on the senior unsecured notes would be directly impacted by any changes in SCB's Long-Term Foreign-Currency IDR.
A ratings upgrade may be considered if there is sustained improvement in the operating environment, and a further material improvement in SCB's financial profile.
Negative rating action on SCB's IDR could arise from a significant erosion of capital buffers alongside an increase in risk appetite, which, for example, may be seen in excessive credit growth or loan concentration risk.
The latest rating action commentary on SCB's MTN programme, dated 10 March 2014, is available at www.fitchratings.com.
The other ratings of SCB are unaffected by this action, and are as follows:
Long-term IDR: 'BBB+'; Outlook Stable
Short-term IDR: 'F2'
Viability Rating: 'bbb+'
Support Rating: '2'
Support Rating Floor: 'BBB-'
National Long-Term Rating: 'AA(tha)'; Outlook Stable
National Short-Term Rating: 'F1+(tha)'
Global medium term note programme: 'BBB+'
Long-term foreign currency senior unsecured debt: 'BBB+'
National short-term senior unsecured debt programme: 'F1+(tha)'
National long-term subordinated debt: 'AA-(tha)'