Bangkok--26 Jul--Fitch Ratings
Fitch Ratings (Thailand) has affirmed Credit Agricole Corporate and Investment Bank’s (CACIB) unsubordinated and unsecured bonds of THB3.1bn due in 2015 at ‘AAA(tha)’.
Key Rating Drivers
The rating of the bonds is based on CACIB’s Long-Term Foreign Currency Issuer Default Rating (LTFC IDR) of ‘A’/‘Stable’. Despite the recent downgrade of CACIB’s LTFC IDR on 17 July 2013, (see "Fitch Downgrades Major French Banks' Related Entities" on www.fitchratings.com), its LTFC IDR remains higher than Thailand’s Long-Term Local Currency IDR (LTLC IDR) of ‘A-’/‘Stable’ and is hence still aligned with ‘AAA(tha)’, the highest rating on Thailand’s National rating scale.
CACIB’s IDRs are based on an extremely high probability of support from its parent, Credit Agricole (CA; A/Stable) and, ultimately, from the French state, if needed. The IDRs of CACIB are equalised with those of CA as Fitch views CACIB as a core subsidiary given its strategic importance to and integration with the parent.
Rating Sensitivities
CACIB’s ‘AAA(tha)’ issue rating could be downgraded if its LTFC IDR falls below Thailand’s LTLC IDR. However, this is unlikely to occur in the near term given CACIB’s current Stable Outlook.
CACIB is the corporate and investment banking arm of CA. The bank has small international private banking operations. It is strongly positioned in Europe and has a selective approach in the US and a historical presence in Asia and the Middle East.