Bangkok--30 Jan--Fitch Ratings
Fitch Ratings (Thailand) has today assigned a National Long-Term rating of ‘AA-(tha)’ to Kasikornbank Public Company Limited’s (KBANK; National Long-Term Rating: ‘AA(tha)’/Outlook Stable) unsecured subordinated debentures of up to THB22bn, with a maturity of 10 years. The proceeds will be used for liquidity management.
The rating of subordinated debentures is consistent with Fitch’s approach of rating such performing instruments at one notch below the issuer’s National Long-Term Rating, given no loss absorption feature. KBANK’s ratings reflect its solid profitability and asset quality, as well as its adequate capital and strong domestic banking franchise in the small-medium enterprise (SME), corporate and retail banking segments. Fitch believes KBANK’s overall financial position is sufficiently robust to absorb severe credit stress.
Established in 1945 by the Lamsam family, KBANK is Thailand’s fourth-largest commercial bank with a 14% market share in assets (as of end-December 2011). The bank’s major subsidiaries focus on fund management, securities, leasing and insurance. 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.