Bangkok--3 Feb--Fitch Ratings
Fitch Ratings (Thailand) has assigned a National Long-Term rating of ‘AA-(tha)’ to Siam Commercial Bank Public Company Limited’s (SCB; National Long-Term Rating: ‘AA(tha)’/Outlook Stable) unsecured subordinated debentures of up to THB20bn, with a maturity of 10 years. The proceeds will be used for the bank’s general corporate purposes.
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. SCB’s ratings reflect its solid profitability, as well as its adequate liquidity and strong capitalisation. The ratings also reflect SCB’s strong domestic franchises in retail and corporate banking segments. The bank’s key performance metrics compare favourably with global peers. Fitch believes SCB’s overall financial position is sufficiently robust to absorb severe credit stress.
Established under the Royal Charter in 1904, SCB is Thailand’s third-largest bank, with a 16% market share of loans and deposits at end-2011. The Crown Property Bureau is the bank’s largest private shareholder with a 23.7% stake. The Ministry of Finance (MOF) also holds another 23.1% in SCB through Vayupak fund, although it has limited board representation and has no involvement in the management of the bank.
Contacts:
Primary Analyst
Wasant Polcharoen
Director
+66 2655 4758
Fitch Ratings (Thailand) Limited
Wave Place 13th Fl., Wireless Road, Lumpini, Patumwan
Bangkok 10330
Secondary Analyst
Patchara Sarayudh
Associate Director
+66 2655 4761
Committee Chairperson
Jonathan Cornish
Managing Director
+852 2263 9901