Bangkok--18 Aug--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 THB30 billion.
This programme replaced CIMBT's previous THB34 billion short-term debenture programme, which expired on 28 July 2017. Debentures issued under the programme will have a maturity of no more than 270 days, and can be issued in separate tranches until 27 July 2018. Proceeds will be used for its liquidity management.
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.
CIMBT's National Ratings are driven by institutional support. Fitch believes CIMBT is a strategically important subsidiary of the parent, Malaysian-based CIMB Bank Berhad (CIMB). The parent holds a near-full ownership (94.1%) in CIMBT, retains full management control of the Thai operations and integrates CIMBT closely with the parent group. CIMB also allows the CIMBT to share its brand and have been providing supports, financially and operationally.
RATING SENSITIVITIES
The National Short-Term Rating on CIMBT's programme is the highest on the national scale, and hence no rating upside is possible.
CIMBT's National Ratings are support-driven. Therefore, material changes in the credit profile at CIMB would be likely to have a similar effect on the National Ratings of CIMBT.
Fitch may downgrade CIMBT's National Ratings if we determine that the parent (CIMB) has a lower propensity to provide the Thai subsidiary extraordinary support, as indicated by a large decrease in ownership or a lower commitment to provide financial support. Neither scenario is expected by Fitch.
Other ratings of CIMBT are unaffected and are as follows:
- National Long-Term Rating: 'AA(tha)'; Outlook Stable
- National Short-Term Rating: 'F1+(tha)'
- National Short-Term Rating on senior unsecured debt: 'F1+(tha)'
- National Long-Term Rating on subordinated debt: 'AA-(tha)'