Bangkok--21 Nov--Fitch Ratings
Fitch Ratings (Thailand) has assigned Bangkok Commercial Asset Management Company Limited's (BAM; AA-(tha)/Negative) issuance of Thai baht senior unsecured notes a rating of 'AA-(tha)'. The notes include a put option for investors in the event BAM does not retain its status as a state enterprise.
KEY RATING DRIVERS
The notes are rated at the same level as BAM's National Long-Term Rating, as they represent unsubordinated and unsecured obligations of the company.
BAM's National Ratings reflect Fitch's expectation of a high probability of support from the Thai sovereign. The Negative Outlook is driven by uncertainty about plans for the state to reduce its shareholding in BAM, which may lead to a reduced propensity to extend extraordinary support to BAM.
RATING SENSITIVITIES
A change in BAM's National Long-Term Rating would have a similar impact on the issue rating.
A clear indication from the state of the importance of BAM in its plans for the financial sector, or a long-term commitment to maintain the existing stake in BAM would lead to a revision of the Outlook to Stable and possibly a re-assessment of the National Long-Term Rating.
A lower propensity of state support could lead to a multiple notch downgrade of the National Rating. In that case, assuming the state retains majority control of BAM, the final rating may range from 'A+(tha)' to 'BBB+(tha)' depending on factors such as the continuance of state linkages and BAM's ultimate financial profile.
For further details, please refer to the press release "Fitch Publishes Bangkok Commercial Asset Management's Rating at 'AA-(tha)'" dated 17 November 2014.