Bangkok--24 Jul--Fitch Ratings
Fitch Ratings (Thailand) Limited has placed Bangkok Mass Transit System Public Company Limited’s (BTSC) four tranches of guaranteed debentures - rated National Long-Term ‘AA-(tha)’ - on Rating Watch Positive (RWP). The tranches - THB2.1bn debenture due August 2013, THB3.6bn debenture due August 2014, THB1.5bn debenture due August 2015 and THB1.3bn debenture due August 2016, are guaranteed by Bank of Ayudhya Public Company Limited (BAY).
The rating action follows BAY’s National Long-Term ‘AA-(tha)’ being placed on RWP on account of Bank of Tokyo-Mitsubishi UFJ, Ltd.’s (BTMU, A/Stable) plan to acquire up to 75% of BAY. Fitch expects that the new ownership would result in a higher probability of extraordinary support from BTMU for BAY. For more information see “Fitch Places Thailand’s Bank of Ayudhya on Rating Watch Positive”, dated 5 July 2013 on www.fitchratings.com.
Key Rating Driver
Guarantee from BAY: The ratings of the debentures are fully based on an unconditional and irrevocable guarantee of principal and interest of the debentures provided by BAY. As a result, the debentures are rated at the same level as the guarantor, BAY.
Rating Sensitivities
Negative: Future developments that may, individually or collectively, lead to negative rating
action include:
- negative rating action on BAY
Positive: Future developments that may, individually or collectively, lead to positive rating
action include:
- positive rating action on BAY