Bangkok--7 Jul--Fitch Ratings
Fitch Ratings (Thailand) has assigned a National Short-Term Rating of 'F1+(tha)' to CIMB Thai Bank Public Company Limited's (CIMBT; AA-(tha)/Stable/F1+(tha)) short-term debenture programme of THB34bn.
This programme will replace CIMBT's existing THB34bn short-term debenture programme, which expires on 30 July 2015. Debentures issued under the programme will have a maturity of no more than 270 days, and can be issued in separate tranches. Proceeds will be used for banking businesses.?
KEY RATING DRIVERS?
The programme is rated at the same level as CIMBT's National Short-Term Rating of 'F1+(tha)', as the issuance under the programme will constitute direct unsubordinated and unsecured obligations of the bank.
The National Ratings of CIMBT reflect Fitch's view that the bank is a strategically important subsidiary of CIMB Bank Berhad (CIMB). This is due to high levels of group shareholding and control, name- and brand-sharing, management integration, and histories of support. Fitch believes that there would be a high probability of extraordinary support for CIMBT if required.
RATING SENSITIVITIES
CIMBT's National Short-Term Rating of the programme is the highest on the national scale and, hence, no rating upside is possible.
CIMBT's National Ratings are support-driven. A significant deterioration of the parent bank's credit profile may result in negative rating action on CIMBT's National Ratings and issue ratings. Any perceived weakening of the importance of CIMBT to its parent could negatively affect the ratings.?
Other ratings of CIMBT are unaffected and are as follows:
CIMBT:
- National Long-term Rating at 'AA-(tha)'; Outlook Stable
- National Short-term Rating at 'F1+(tha)'
- Lower Tier 2 debt affirmed at 'A+(tha)'