(The following statement was released by the rating agency)
BANGKOK, August 18 (Fitch) Fitch Ratings has rated TMB Bank
Limited's (TMB; BBB-/Stable) proposed Thai baht-denominated
unsecured notes at 'A(tha)'. This would be the first Basel
III-compliant Tier 2
issue by TMB and the proceeds will be used to replace some of
the legacy Tier 2
notes that may be redeemed and amortised.
KEY RATING DRIVERS
The Basel III Tier 2 notes are rated one notch below the anchor
reflect their higher loss-severity risk relative to senior
arising from their subordinated status. Key terms of the notes
non-viability trigger (defined as emergency capital assistance
from the central
bank or any other empowered government agency), with a partial
mandatory full write-down feature. The Tier 2 notes are more
senior than any
Additional Tier 1 securities with loss-absorption features. In
the event of a
write-down, the Tier 2 notes would be written down on a pari
passu basis with
all other Tier 2 loss-absorbing instruments with write-down
features of the
TMB's National Long-Term Rating (A+(tha)/Stable) is used as the
and it is based on the company's stand-alone financial strength.
credit profile is viewed as the best indicator of
non-performance risk. No
additional notching has been applied as there are no
The bank's overall financial performance - particularly its
asset quality - has
improved in recent years, although its profitability remains the
Thailand's mid-sized banks. However, capitalisation and
liquidity are sound and
compare well with its peers'.
Any changes in TMB's stand-alone credit profile and in its
Rating would have an impact on the rating of these notes.
A material reversal of recent gains in key financial measures
such as asset
quality and earnings could lead to a downgrade. So too could a
in risk appetite if not offset by strengthened buffers in terms
of capital and
profitability. An upgrade is unlikely in the near term because
further improvement in TMB's overall credit profile to be
gradual and this has
been factored into the ratings.
The other ratings of TMB are unaffected and are as follows:
- Long-Term IDR: 'BBB-'; Outlook Stable
- Short-Term IDR: 'F3'
- USD3.0bn senior unsecured medium-term note programme: 'BBB-'
- Viability Rating: 'bbb-'
- Support Rating: '3'
- Support Rating Floor: 'BB+'
- National Long-Term Rating: 'A+(tha)'; Outlook Stable
- National Short-Term Rating: 'F1(tha)';
- National subordinated debt rating: 'A(tha)'
+662 108 0154
Fitch Ratings (Thailand) Limited
Park Ventures, Level 17
57 Wireless Road, Lumpini
Patumwan, Bangkok 10330
+662 108 0152
+852 2263 9901
Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234,
Note to Editors: Fitch's National ratings provide a relative
creditworthiness for rated entities in countries with relatively
international sovereign ratings and where there is demand for
such ratings. The
best risk within a country is rated 'AAA' and other credits are
relative to this risk. National ratings are designed for use
mainly by local
investors in local markets and are signified by the addition of
for the country concerned, such as 'AAA(tha)' for National
ratings in Thailand.
Specific letter grades are not therefore internationally
Additional information is available at www.fitchratings.com.
Applicable criteria, "Global Financial Institutions Rating
Criteria", dated 31
January 2014, "Rating FI Subsidiaries and Holding Companies"
dated 10 August
2012, and "National Scale Rating Criteria", dated 30 October
2013, are available
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
Rating FI Subsidiaries and Holding Companies
National Scale Ratings Criteria
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS
here. IN ADDITION,
ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS,
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE
AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE
FROM THE 'CODE OF
CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER
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
ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER
ON THE FITCH