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Correction: Fitch Rates Kasikornbank's EMTN Programme 'BBB+', Senior Notes 'BBB+(EXP)'
July 3, 2014 / 5:47 AM / 3 years ago

Correction: Fitch Rates Kasikornbank's EMTN Programme 'BBB+', Senior Notes 'BBB+(EXP)'

(The following statement was released by the rating agency) BANGKOK/SINGAPORE, July 03 (Fitch) This announcement corrects the version published on 22 April 2014 to include disclosure language relating to Kasikornbank Public Company Limited's shareholding in Fitch Ratings (Thailand) Limited that was missing from the previous version. Fitch Ratings has assigned Kasikornbank Public Company Limited's (KBank: 'BBB+'/Stable) outstanding USD2.5bn euro medium term note (EMTN) programme a senior unsecured rating of 'BBB+'. Fitch has also assigned an expected 'BBB+(EXP)' rating to KBank's proposed unsecured senior notes to be issued under this EMTN programme. The notes will be issued through KBank's Cayman Islands branch. The proceeds would be used for the bank's funding and general corporate purposes. The final rating is subject to the receipt of final documentation conforming to information already received. Fitch stresses that there is no assurance that notes issued in the future under the programme will be rated the same as the programme rating, as the programme also permits the issuance of subordinated notes. KEY RATING DRIVERS 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. KBank's ratings are based on its solid domestic franchise, improved asset quality, steady funding and liquidity, sound capitalisation as well as strong profitability. RATING SENSITIVITIES The ratings on the EMTN program and senior unsecured notes would be directly impacted by any changes in KBank's LTFC IDR. A higher sovereign rating, improvement in the operating environment and further strengthening in the bank's overall financial profile, may be positive for KBank's ratings. Any prospects for an Upgrade in the 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)' 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): 'AA-(tha)' Contact: Primary Analyst Ambreesh Srivastava Senior Director Fitch Ratings Singapore Pte Ltd 6 Temasek Boulevard #35-05 Suntec Tower Four Singapore 038986 Secondary Analyst Patchara Sarayudh Director +662 108 0152 Committee Chairperson Jonathan Cornish Managing Director +852 2263 9901 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com. Disclosure: Kasikorn Asset Management Company Limited (of which KBank holds a 100% stake) owns 10% of the shares in Fitch Ratings (Thailand) Limited. Muang Thai Life Assurance Company Limited (of which KBank holds a 38.3% economic interest) owns 10% of the shares in Fitch Ratings (Thailand) Limited. No shareholder, other than Fitch Ratings Limited of the UK, is involved in the day-to-day operations of, or credit rating reviews undertaken by Fitch Ratings (Thailand) Limited. Additional information is available at www.fitchratings.com Applicable criteria, "Global Financial Institutions Rating Criteria" dated 31 January 2014, is available on www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria 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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