Bangkok--12 Mar--Fitch Ratings
Fitch Ratings has assigned Siam Commercial Bank Public Company Limited’s (SCB: ‘BBB+’/Stable) upcoming senior notes a ‘BBB+’ rating. The proposed notes are to be issued under the bank’s USD2.5bn medium term note (MTN) programme, which was recently revised to allow issue of subordinated notes in addition to senior notes.
The rating of the senior notes under the programme is at the same level as SCB’s Long-term Foreign Currency Issuer Default 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. Its key performance metrics compare favourably with those of its 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 asset size at end-2011. The Crown Property Bureau is the bank's largest private shareholder with a 23.7% stake. The Ministry of Finance holds another 23.1% in SCB through Vayupak fund, although it has limited board representation and no involvement in the management of the bank.