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Fitch Upgrades National Rating of Capital Nomura to 'AA(tha)'; Outlook Stable
December 7, 2017 / 8:19 AM / 6 days ago

Fitch Upgrades National Rating of Capital Nomura to 'AA(tha)'; Outlook Stable

(The following statement was released by the rating agency) BANGKOK, December 07 (Fitch) Fitch Ratings has upgraded the National Long-Term Rating of Capital Nomura Securities Public Company Limited (CNS) to 'AA(tha)' from 'AA-(tha)'. The Rating Outlook is Stable. A full list of rating actions is at the end of this commentary. The upgrade follows Fitch's assessment that there has been an improvement in the credit profile of CNS' parent Nomura Holdings, Inc. (A-/Stable/bbb+) relative to other entities on the Thai National Ratings scale, which has enhanced its ability to provide support to its Thai subsidiary (see also <a href="https://www.fitchratings.com/site/pr/1031233">Fitch Affirms Nomura and Daiwa; Upgrades VR of Nomura Holdings, published 25 October 2017). KEY RATING DRIVERS CNS's National Long-Term Rating reflects Fitch's view of its strategic importance to Nomura Holdings. This is due to the majority shareholding by the parent, high levels of management control and integration, name- and brand-sharing, and history of financial support from Nomura Holdings. CNS has a well-established franchise and a relatively diverse client base in the Thai securities industry. It has been consistently profitable, posting net income of THB388 million in 9M17, up from THB293 million a year earlier. RATING SENSITIVITIES CNS's ratings could be impacted by any changes in Fitch's view on the parent's propensity to provide extraordinary support. For example, this may be indicated by significant changes in shareholding or in the level of control Nomura Holdings has in CNS. However, Fitch does not expect any of such changes to affect Nomura Holdings' propensity to support CNS in the near term. CNS's ratings would also be affected by further changes in Nomura Holdings' credit profile. The rating actions are as follows: - National Long-Term Rating upgraded to 'AA(tha)' from 'AA-(tha)'; Outlook Stable - National Short-Term Rating affirmed at 'F1+(tha)' - National Short-Term Rating on unsecured unsubordinated debenture programme affirmed at 'F1+(tha)' Contact: Primary Analyst Parson Singha, CFA Senior Director +66 2108 0151 Fitch Ratings (Thailand) Limited Park Ventures, Level 17 57 Wireless Road, Lumpini, Patumwan, Bangkok 10330 Secondary Analysts Jackerin Jeeradit Associate Director +66 2108 0163 Committee Chairperson Jonathan Lee Senior Director +886 2 8175 7601 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@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 on www.fitchratings.com Applicable Criteria Global Non-Bank Financial Institutions Rating Criteria (pub. 10 Mar 2017) here National Scale Ratings Criteria (pub. 07 Mar 2017) here Additional Disclosures Solicitation Status here#solicitation Endorsement Policy 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 WEB SITE AT 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. DIRECTORS AND SHAREHOLDERS RELEVANT INTERESTS ARE AVAILABLE here. 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. Copyright © 2017 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. 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Users of Fitch’s ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed. The information in this report is provided “as is” without any representation or warranty of any kind, and Fitch does not represent or warrant that the report or any of its contents will meet any of the requirements of a recipient of the report. A Fitch rating is an opinion as to the creditworthiness of a security. This opinion and reports made by Fitch are based on established criteria and methodologies that Fitch is continuously evaluating and updating. Therefore, ratings and reports are the collective work product of Fitch and no individual, or group of individuals, is solely responsible for a rating or a report. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. 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