Bangkok--22 Oct--Fitch Ratings
Fitch Ratings (Thailand) Limited has assigned ICBC (Thai) Leasing Company Limited’s (ICBCTL; AAA(tha)/Stable) THB4.3bn three-year guaranteed bonds final National Long-Term Ratings of ‘AAA(tha)’. The Outlook is Stable.
The bonds are guaranteed by Industrial and Commercial Bank of China (Thai) Public Company Limited (ICBCT; AAA(tha)/Stable).
The rating action follows the completion of the bond issue as well as the receipt of final documents conforming to information previously received.
KEY RATING DRIVERS
The ratings are based entirely on an irrevocable and unconditional guarantee provided by ICBCT. The bank’s National Ratings are underpinned by Fitch’s belief of an extremely high probability of extraordinary support, if required, from Industrial and Commercial Bank of China (ICBC; A/Stable), its parent.
RATING SENSITIVITIES
The ratings of the guaranteed bond would be affected by any negative ratings action at ICBCT. For example, this could be caused by a change in ICBC’s ability to support ICBCT, which could be evidenced by a ratings downgrade at ICBC, or by a shift in ICBC’s propensity to support ICBCT, which could arise from a significant reduction in the parent’s shareholding. However, Fitch believes that these scenarios are unlikely to occur in the near term.
ICBCT’s National Long-Term Rating is the highest on the national scale and hence no upside is possible. An upgrade of Thailand’s Long-Term Local-Currency IDR, while ICBC’s ratings remain unchanged, may result in a downgrade of ICBCT’s National Ratings.
For further information, please refer to the rating action commentary titled "Fitch Rates ICBC (Thai) Leasing's Guaranteed Bonds 'AAA(tha)(EXP)'", dated 12 September 2014 and "Fitch Confirms ICBCTL’s Upsized Guaranteed Bonds at ‘AAA(tha)(EXP)", dated 25 September 2014 on www.fitchratings.com.