(The following statement was released by the rating agency)
BANGKOK/SINGAPORE, August 15 (Fitch) Fitch Ratings has assigned
Short-Term rating of 'F1+(tha)' to Krung Thai Bank Public
(KTB) unsubordinated and unsecured short-term debenture
programme of up to
Debentures issued under the programme will have a maturity of no
more than 270
days, and can be issued in several tranches within a year.
Proceeds from the
issuance would be used for the bank's general corporate
KEY RATING DRIVERS
The program is rated at the same level as KTB's National
Short-Term Rating of
'F1+(tha)' as the debentures issued under the programme will
unsubordinated and unsecured obligations of the bank.
KTB's ratings are driven by its Support Rating Floor, and
expectation of a high probability of extraordinary support from
the Thai state,
if needed. KTB is the only commercial bank in which the state
ownership. The bank is strategically important to the government
- it has close
operational links with the Ministry of Finance, manages the
disbursal of the
national budget, and is capable of playing a quasi-policy role
Any change in KTB's National Short-Term Rating will affect the
rating of the
unsubordinated unsecured debentures. The National Short-Term
Rating is the
highest on the national scale, and hence there is no upside on
the rating. A
reduced propensity of the government to provide support,
including a material
reduction of state ownership in KTB, could lead to a negative
rating action on
the Support Rating and Support Rating Floor, though we do not
expect this to
occur in the medium term, and in any case this would not
necessarily have an
immediate impact on the National Short-Term Rating.
The other ratings of KTB are unaffected and are as follows:
Long-Term IDR: 'BBB'; Outlook Stable
Short-Term IDR: 'F3'
Long-term foreign currency senior unsecured notes: 'BBB'
Senior unsecured USD 2.5bn EMTN programme: 'BBB'
Basel III-compliant Tier 2 subordinated notes: 'BBB-'
International rating for hybrid Tier 1 securities: 'B'
Viability Rating: 'bbb-'
Support Rating: '2'
Support Rating Floor: 'BBB'
National Long-Term Rating: 'AA+(tha)'; Outlook Stable
National Short-Term Rating: 'F1+(tha)'
Short-term debt issuance programme (THB 30bn): 'F1+(tha)'
National long-term subordinated debt: 'AA(tha)'
National long-term rating for hybrid Tier 1 securities:
+662 108 0154
Fitch Ratings (Thailand) Limited
Park Ventures, Level 17
57 Wireless Road, Lumpini
Patumwan, Bangkok 10330
Parson Singha, CFA
+662 108 0151
+852 2263 9901
Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234,
Additional information is available at www.fitchratings.com.
Applicable criteria, "Global Financial Institutions Rating
Criteria", dated 31
January 2014, and "National Scale Rating Criteria", dated 30
October 2013, are
available at www.fitchratings.com.
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
National Scale Ratings Criteria
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