(The following statement was released by the rating agency)
BANGKOK/SINGAPORE, July 03 (Fitch) This announcement corrects
published on 22 April 2014 to include disclosure language
Kasikornbank Public Company Limited's shareholding in Fitch
Limited that was missing from the previous version.
Fitch Ratings has assigned Kasikornbank Public Company Limited's
'BBB+'/Stable) outstanding USD2.5bn euro medium term note (EMTN)
senior unsecured rating of 'BBB+'.
Fitch has also assigned an expected 'BBB+(EXP)' rating to
unsecured senior notes to be issued under this EMTN programme.
The notes will be
issued through KBank's Cayman Islands branch. The proceeds would
be used for the
bank's funding and general corporate purposes. The final rating
is subject to
the receipt of final documentation conforming to information
Fitch stresses that there is no assurance that notes issued in
the future under
the programme will be rated the same as the programme rating, as
also permits the issuance of subordinated notes.
KEY RATING DRIVERS
The senior notes are rated at the same level as KBank's
Currency Issuer Default Rating (LTFC IDR) of 'BBB+' as they
and unsubordinated obligations of the bank.
KBank's ratings are based on its solid domestic franchise,
quality, steady funding and liquidity, sound capitalisation as
well as strong
The ratings on the EMTN program and senior unsecured notes would
impacted by any changes in KBank's LTFC IDR.
A higher sovereign rating, improvement in the operating
environment and further
strengthening in the bank's overall financial profile, may be
KBank's ratings. Any prospects for an Upgrade in the IDRs and
are currently low.
A downgrade may result from an increasing risk of significant
asset quality that leads to an erosion of profitability or
include increasing risk appetite through rising loan
excessive loan growth in the absence of further strengthening
higher profitability and capital.
The other ratings of KBank are unaffected by this action, and
are as follows:
Long-Term Foreign Currency IDR: 'BBB+'; Outlook Stable
Short-Term Foreign Currency 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)'
Long-term foreign currency senior unsecured debt: 'BBB+'
National Short-term senior unsecured debt: 'F1+(tha)'
National Long-term subordinated debt (legacy Basel II Tier 2
Fitch Ratings Singapore Pte Ltd
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Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234,
Disclosure: Kasikorn Asset Management Company Limited (of which
KBank holds a
100% stake) owns 10% of the shares in Fitch Ratings (Thailand)
Thai Life Assurance Company Limited (of which KBank holds a
interest) owns 10% of the shares in Fitch Ratings (Thailand)
shareholder, other than Fitch Ratings Limited of the UK, is
involved in the
day-to-day operations of, or credit rating reviews undertaken by
Additional information is available at www.fitchratings.com
Applicable criteria, "Global Financial Institutions Rating
Criteria" dated 31
January 2014, is available on www.fitchratings.com.
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
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