Bangkok--12 Nov--Fitch Ratings
Fitch Ratings (Thailand) has today assigned an ‘F1+(tha)’ National Short-term rating to Kasikornbank Public Company Limited’s (KBANK; ‘AA(tha)’/Stable Outlook) unsecured unsubordinated debenture programme of up to THB50bn with a maturity of no more than 270 days. The issue is being released in several tranches from September 2010 to March 2011.
Fitch affirmed all of KBANK’s ratings on 8 November 2010 (please see the rating action commentary, entitled “Fitch Affirms Kasikornbank’s Ratings; Outlook Stable”), to reflect its robust profitability, asset quality and capital, as well as its strong domestic banking franchise in the SMEs, corporates and retail banking segments. The agency notes that KBANK’s solid capital and reserve cushion could allow it to withstand a severe credit stress.
Given KBANK’s large deposit share and importance to the Thai economy, Fitch believes there is a high probability the bank would receive state support, should the need arise, although given its resilience under Fitch’s stress testing, it believes such a need would be unlikely.
Established in 1945 by the Lamsam family, KBANK is Thailand’s third-largest commercial bank with a 16% market share. The bank’s major subsidiaries focus on fund management, securities, leasing and insurance. KBANK increased its economic interest in Muang Thai Life Assurance in 2009 to 38.3% from 7.5%. KBANK’s ownership is now widely dispersed with foreign, mainly institutional, shareholders holding a 49% stake. The Lamsam family still retains management positions and representation on the Board of Directors.
Contacts:
Primary Analyst
Patchara Sarayudh
Associate Director
+662 655 4761;
Fitch Ratings (Thailand) Limited
55 Wireless Road
Lumpini, Patumwan
Bangkok 10330
Secondary Analyst
Vincent Milton
Senior Director
+662 655 4759