Bangkok--11 Mar--Fitch Ratings
Fitch Ratings (Thailand) has assigned ING Bank NV’s (ING Bank) senior unsecured bonds of up to THB10bn with a maturity of up to 10 years a National Long-term ‘AAA(tha)’ rating.
The ‘AAA(tha)’ rating is the highest on Thailand’s National Rating scale, reflecting ING Bank’s Long-Term Foreign-Currency Issuer Default Rating (LTFC IDR) of ‘A+’. This is higher than Thailand’s Long-Term Local Currency Issuer Default Rating (LTLC IDR) of ‘A-’, equivalent to ‘AAA(tha)’ on the National Rating scale.
ING Bank’s ‘AAA(tha)’ issue rating could be downgraded if ING Bank’s LTFC IDR falls below Thailand’s LTLC IDR, although this would most likely reflect any perceived weakening of support as ING Bank’s LTFC IDR is currently at its Support Rating Floor.
ING Bank’s LTFC IDR, Support Rating and Support Rating Floor reflect potential support from the Dutch state (‘AAA’/Stable), in case of need. Due to ING Bank’s importance to the domestic economy, Fitch considers there to be an extremely high probability that support from the Dutch authorities would be forthcoming if needed. The bank’s Individual Rating of ‘C’ reflects its strong franchise, especially in the Benelux, sound loan book and robust funding base. Although profitability has improved, the Individual Rating would suffer from renewed pressure on margins or any economic slowdown.
ING Bank is the second-largest retail bank in the Netherlands and the fourth-largest in Belgium. It also has a wholesale banking business that caters to mainly Benelux clients, although it is active in major global financial centers, and a direct banking business (ING Direct).