Bangkok--11 Sep--Fitch Ratings
Fitch Ratings has assigned Siam Commercial Bank Public Company Limited’s (SCB: ‘BBB+’/Stable) upcoming issue of senior notes a ‘BBB+’ rating.
The proposed notes, to be issued by SCB’s Hong Kong branch, will be consolidated with the outstanding USD600m senior notes, also issued through the branch in March 2012 under the bank’s USD2.5bn medium-term note (MTN) programme, to form a single series maturing in 2017.
The rating of the senior notes is at the same level as SCB’s Long-term Foreign Currency Issuer Default Rating of ‘BBB+’. The ratings are underpinned by the bank’s sound capital and profitability, strengthened asset quality and reserves and its strong domestic franchise. Fitch believes the bank’s overall financial position is sufficiently robust to absorb considerable credit stress. This is reflected in the Stable Outlook.
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 23.7%. The Ministry of Finance holds another 23.1% in SCB through the Vayupak fund, although it has limited board representation and no involvement in the management of the bank.