Bangkok--15 Jun--Fitch Ratings
Fitch Ratings has assigned CIMB Thai Bank Public Company Limited’s (CIMBT) issue of up to THB3bn subordinated debentures maturing in 2021, but with a call option in 2016, a National Long-Term rating of ‘A+(tha)’. The proceeds will be used for the bank’s general corporate purposes.
The rating of subordinated debentures is one notch below CIMBT’s National Long-Term rating of ‘AA-(tha)’, which has a Stable Outlook, and is in line with Fitch's approach to rating such subordinated debt instruments of financial institutions. Fitch expects the subordinated debentures to qualify as Lower Tier 2 capital of CIMBT, represent the bank's subordinated and unsecured obligations and rank equally with its other Lower Tier 2 capital securities.
CIMBT’s National Long-Term rating is driven by Fitch’s expectations of support from its parent bank, CIMB Bank Berhad (CIMB; ‘BBB+’/Stable) of Malaysia. Fitch believes that should parental support be required by CIMBT, this would also extend to its debt instruments. CIMBT is strategically and operationally integrated with CIMB and has close name association with the parent. CIMB has near full ownership (93.15%) and management control of CIMBT.