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Fitch Rates ICBC (Thai) Leasing's Debenture Programme 'F1+(tha)'
April 9, 2014 / 4:52 AM / 4 years ago

Fitch Rates ICBC (Thai) Leasing's Debenture Programme 'F1+(tha)'

(The following statement was released by the rating agency) BANGKOK/HONG KONG, April 08 (Fitch) Fitch Ratings (Thailand) Limited has assigned ICBC (Thai) Leasing Company Limited's (ICBCTL; AAA(tha)/Stable) unsecured unsubordinated short-term debenture programme of up to THB20bn a National Short-Term Rating of 'F1+(tha)'. The debentures will have a maturity of no more than 270 days and will be issued in several tranches within a year. The proceeds will be used to refinance debt and for funding the expansion of the company's auto loan portfolio. This short-term debenture programme will replace ICBCTL's existing THB15bn short-term debenture programme, which will expire in May 2014. KEY RATING DRIVERS ICBCTL's programme is rated at the same level as the company's National Short-Term Rating of 'F1+(tha)' as issuance under the programme will constitute unsecured unsubordinated short-term obligations of ICBCTL. The National Ratings of ICBCTL are equalised with those of its parent, Industrial and Commercial Bank of China (Thai) Public Company Limited (ICBCT, AAA(tha)/Stable/F1+(tha)). This reflects its importance as a core subsidiary of the bank - the leasing business has historically been one of the main businesses of ICBCT, and accounted for 38% of the bank's total loan portfolio at end-2013. The ratings also take into account the full ownership by ICBCT, as well as the close operational and management integration between the parent and subsidiary. ICBCT's ratings, in turn, are driven by support from its parent, Industrial and Commercial Bank of China (ICBC, A/Stable/F1). RATING SENSITIVITIES Any change in the rating of the programme will be driven by a change in ICBCTL's National Short-Term Rating, which itself is driven by the rating of ICBCT. The National Short-Term Rating for ICBCTL is already the highest on the national scale, and hence there is no upside. An upgrade of Thailand's Long-Term Local-Currency IDR, while ICBC's ratings remain unchanged, may result in a downgrade of ICBCTL's National Ratings. Negative rating action on the IDRs on ICBC could lead to similar action on its subsidiaries' ratings. A material change in the parent bank's ability and/or propensity to support its Thai subsidiaries could also have an impact on the subsidiaries' ratings. For example, a significant reduction in group shareholding in the subsidiaries could result in negative rating action. ICBCTL is 99.99%-owned by ICBCT, while ICBCT is 97.7%-owned by ICBC. The other ratings of ICBCTL are unaffected by this action, and are as follows: National Long-Term Rating at 'AAA(tha)'; Stable Outlook National Short-Term Rating at 'F1+(tha)' National Long-Term Rating on guaranteed bonds by ICBCT at 'AAA(tha)' ; Stable Outlook National Long-Term Rating on senior unsecured bonds at 'AAA(tha)' Contacts: Primary Analyst Piyamas Chaihetphon, CFA, CPA Associate Director +662 108 0153 Fitch Ratings (Thailand) Limited Park Ventures, Level 17 57 Wireless Road, Lumpini Patumwan, Bangkok 10330 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; Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: wailun.wan@fitchratings.com. Note to Editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(tha)' for National ratings in Thailand. Specific letter grades are not therefore internationally comparable. Additional information is available at www.fitchratings.com. Applicable criteria, "Global Financial Institutions Rating Criteria", dated 31 January 2014, "National Scale Ratings Criteria", dated 30 October 2013, "Rating FI Subsidiaries and Holding Companies" dated 10 August 2012, and "Finance and Leasing Companies Criteria" dated 11 December 2012 are available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here National Scale Ratings Criteria here Rating FI Subsidiaries and Holding Companies here Finance and Leasing Companies 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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