(Repeat for additional subscribers)
April 23 (The following statement was released by the rating agency)
Fitch Ratings has assigned Kasikornbank Public Company Limited's (KBank;
BBB+/Stable) USD350m senior unsecured notes due October 2019 a final rating of 'BBB+'. The notes
are issued under KBank's USD2.5bn euro medium term note (EMTN) programme and are issued by the
bank's Cayman Islands branch.
The rating action follows the completion of the bond issue, 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 22 April 2014.
KEY RATING DRIVERS
The senior notes are rated at the same level as KBank's Long-Term Foreign
Currency Issuer Default Rating (IDR) of 'BBB+' as they represent unsecured and
unsubordinated obligations of the bank.
KBank's ratings are based on its solid domestic franchise, improved asset
quality, steady funding and liquidity, sound capitalisation as well as strong
The rating of the senior unsecured notes would be directly impacted by any
changes in KBank's Long-Term Foreign Currency IDR.
A higher sovereign rating, improvement in the operating environment and further
strengthening of the bank's overall financial profile, may be positive for
KBank's ratings. The prospects of an upgrade in the bank's IDRs and Viability
Rating are currently low.
A downgrade may result from an increasing risk of significant deterioration in
asset quality that leads to an erosion of profitability or capital. Examples
include increasing risk appetite through rising loan concentration and/or
excessive loan growth in the absence of further strengthening buffers through
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)'
USD2.5bn EMTN programme: 'BBB+'
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 securities):