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3 years ago
Fitch Rates Siam Commercial Bank's Senior Notes Final 'BBB+'
April 4, 2014 / 3:36 AM / 3 years ago

Fitch Rates Siam Commercial Bank's Senior Notes Final 'BBB+'

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(The following statement was released by the rating agency) BANGKOK/SINGAPORE, April 03 (Fitch) Fitch Ratings has assigned Siam Commercial Bank Public Company Limited's (SCB; BBB+/Stable) USD750m five-year senior unsecured notes due April 2019 a final rating of 'BBB+'. The notes are issued under SCB's USD3.5bn medium-term note (MTN) 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 2 April 2014. KEY RATING DRIVERS The notes are rated at the same level as SCB's Long-Term Foreign-Currency Issuer Default Rating (IDR) and the rating on its MTN programme of 'BBB+', as they represent unsecured and unsubordinated obligations of the bank. SCB's IDR reflects its stand-alone credit strength. SCB is Thailand's second-largest commercial bank by assets as of December 2013, and it has sound profitability and capitalisation. RATING SENSITIVITIES The rating on the senior unsecured notes would be directly impacted by any changes in SCB's Long-Term Foreign-Currency IDR. A ratings upgrade may be considered if there is sustained improvement in the operating environment, and a further material improvement in SCB's financial profile. Negative rating action on SCB's IDR could arise from a significant erosion of capital buffers alongside an increase in risk appetite, which, for example, may be seen in excessive credit growth or loan concentration risk. The other ratings of SCB are unaffected by this action, and are as follows: Long-term IDR: 'BBB+'; Outlook Stable Short-term 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)' Global medium term note programme: 'BBB+' Long-term foreign currency senior unsecured debt: 'BBB+' National short-term senior unsecured debt programme: 'F1+(tha)' National long-term subordinated debt: 'AA-(tha)' Contacts: Primary Analyst Ambreesh Srivastava Senior Director +65 6796 7218 Fitch Ratings Singapore PTE Ltd 6 Temasek Boulevard #35-05 Suntec Tower Four Singapore 038986 Secondary Analyst Parson Singha, CFA Senior Director +662 108 0151 Committee Chairperson Jonathan Cornish Managing Director +852 2263 9901 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com. Additional information is available at www.fitchratings.com. Applicable criteria, "Global Financial Institutions Rating Criteria" dated 31 January 2014 are available on www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating 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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