(The following statement was released by the rating agency)
Feb 07 - Fitch Ratings has assigned Kasikornbank Public Company Limited's (KBANK:
'BBB+'/Stable) USD500m outstanding senior unsecured notes due in March 2018 a 'BBB+' rating. The
notes were issued under the bank's USD2.5bn euro medium term note (EMTN) programme through
KBANK's Hong Kong branch. The proceeds were used for the bank's general corporate
Rating Action Rationale
The senior notes are rated at the same level as KBANK's Long-term Foreign
Currency Issuer Default Rating (LTFC IDR) of 'BBB+' as they represent unsecured
and unsubordinated obligations of the bank.
The ratings are based on the bank's sound capital and profitability,
strengthened asset quality and reserves and its strong domestic franchise. Fitch
believes the bank's overall financial position is sufficiently robust to absorb
considerable credit stress. This is reflected in its Stable Outlook.
Rating Drivers and Sensitivities
A sustained increase in loan concentration or rapid growth leading to material
deterioration in asset quality or a weaker liquidity profile could lead to a
negative rating action on the bank's IDRs. A downgrade of Thailand's BBB+'
Country Ceiling may also lead to a downgrade of the banks' IDRs as they are
constrained by the Country Ceiling. Any changes in KBANK's LTFC IDR will result
in a similar change in the rating of the senior notes.
Established in 1945 by the Lamsam family, KBANK is Thailand's fourth-largest
commercial bank with a 15% market share of the sector's assets (as of
end-September 2012). Its major subsidiaries focus on fund management,
securities, leasing and insurance. KBANK's ownership is now widely dispersed
with foreign, mainly institutional, shareholders holding a 49% stake. The Lamsam
family still retains management positions and representation on the Board of