Fitch Rates United Overseas Bank (Thai)'s Senior Bonds 'AAA(tha)'

Tue Apr 29, 2014 11:16pm EDT

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(The following statement was released by the rating agency) BANGKOK/SINGAPORE, April 29 (Fitch) Fitch Ratings (Thailand) Limited has assigned United Overseas Bank (Thai) Public Company Limited's (UOBT: A-/Stable/AAA(tha)) upcoming issue of up to THB6bn senior unsecured bonds with maturity of up to three years National Long-Term Ratings of 'AAA(tha)'. The proceeds will be used for general corporate purposes. KEY RATING DRIVERS The senior notes are rated at the same level as UOBT's National Long-Term Rating of 'AAA(tha)' as they represent unsecured and unsubordinated obligations of the company. The National Ratings of UOBT reflect Fitch's belief of an extremely high probability of extraordinary support, if required, from its parent United Overseas Bank Limited (UOB; AA-/Stable). Fitch considers UOBT to be strategically important to UOB due to the near-full 99.7% ownership, name- and brand-sharing, high level of integration, and past history of ordinary financial support. RATING SENSITIVITIES The National Long-Term Rating for UOBT is already at the highest end of the national scale, and hence there is no upside. A material change in UOB's ability and/or propensity to support UOBT may have a negative impact on UOBT's rating, though Fitch does not expect such shifts to occur in the short term. The other ratings of UOBT are unaffected by this action, and are as follows: Long-Term Foreign Currency IDR at 'A-'; Outlook Stable Short-Term Foreign Currency IDR at 'F2' Viability Rating at 'bb+' Support Rating at '1' National Long-Term Rating at 'AAA(tha)'; Outlook Stable National Short-term Rating at 'F1+(tha)' Contacts: Primary Analyst Parson Singha, CFA Senior Director +662 108 0151 Fitch Ratings (Thailand) Limited Park Ventures, Level 17 57 Wireless Road, Lumpini Patumwan, Bangkok 10330 Secondary Analyst Patchara Sarayudh Director +662 108 0152 Committee Chairperson Jonathan Cornish Managing Director +852 2263 9901 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com. Note to Editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(tha)' for National ratings in Thailand. Specific letter grades are not therefore internationally comparable. Additional information is available at www.fitchratings.com. Applicable criteria, "Global Financial Institution Rating Criteria", dated 31 January 2014, "National Scale Ratings Criteria", dated 30 October 2013, and "Rating FI Subsidiaries and Holding Companies" dated 10 August 2012, are available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here National Scale Ratings Criteria here Rating FI Subsidiaries and Holding Companies here Additional Disclosure Solicitation Status null/gws/en/disclosure/solicitation?pr_id=828194 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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