Fitch Rates ICBC (Thai) Leasing's Guaranteed Bonds Final 'AAA(tha)'

Wed May 28, 2014 1:44am EDT

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(The following statement was released by the rating agency) BANGKOK/HONG KONG, May 28 (Fitch) Fitch Ratings (Thailand) Limited has assigned ICBC (Thai) Leasing Company Limited's (ICBCTL; AAA(tha)/Stable) THB1.937bn three-year, THB1.790bn four-year, and THB4.873bn five-year guaranteed bonds final National Long-Term Ratings of 'AAA(tha)'. The Outlook is Stable. The bonds are guaranteed by Industrial and Commercial Bank of China (Thai) Public Company Limited (ICBCT; AAA(tha)/Stable), its parent. The rating action follows the completion of the bond issues as well as the receipt of final documents conforming to information previously received. The final rating is the same as the expected rating assigned on 30 April 2014. KEY RATING DRIVERS The ratings are based entirely on an unconditional and irrevocable guarantee provided by ICBCT. ICBCT's ratings reflect Fitch's belief of an extremely high probability of extraordinary support, if required, from its parent, Industrial and Commercial Bank of China (ICBC; A/Stable). Fitch considers ICBCT to be strategically important to the parent due to its important role in allowing the group to support the rapid growth in trade and investment between Thailand and China, the high level of operational integration, past history of ordinary financial support and near-full ownership. RATING SENSITIVITIES Any change in the rating of the guaranteed bonds will be driven by a change in ICBCT's National Long-Term Rating. Any changes in the ratings of the guarantor will be driven by either a negative rating action on the rating of ICBC, or a reduction in ICBC's shareholding in or in its propensity to support ICBCT. ICBCT's National Long-Term Rating is the highest on the national scale and hence no upside is possible. An upgrade of Thailand's Long-Term Local-Currency IDR, while ICBC's ratings remain unchanged, may result in a downgrade of ICBCT's National Ratings. ICBCTL is 99.99%-owned by ICBCT, while ICBCT is 97.7%-owned by ICBC. The other ratings of ICBCTL are unaffected by this action, and are as follows: National Long-Term Rating at 'AAA(tha)'; Stable Outlook National Short-Term Rating at 'F1+(tha)' National Long-Term Rating on bonds guaranteed by ICBCT at 'AAA(tha)' ; Stable Outlook National Long-Term Rating on senior unsecured bonds at 'AAA(tha)' National Short-Term unsecured unsubordinated debenture programme 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; Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: wailun.wan@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 Institutions Rating Criteria", dated 31 January 2014, "National Scale Ratings Criteria", dated 30 October 2013, "Rating FI Subsidiaries and Holding Companies" dated 10 August 2012, and "Finance and Leasing Companies Criteria" dated 11 December 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 Finance and Leasing Companies Criteria here Additional Disclosure Solicitation Status here 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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