Bangkok--30 Apr--Fitch Ratings
Fitch Ratings (Thailand) Limited has assigned ICBC (Thai) Leasing Company Limited’s (ICBCTL; AAA(tha)/Stable) up to THB6bn of guaranteed bonds an Expected National Long-Term Rating of ‘AAA(tha)(EXP)’. The Outlook is Stable.
ICBCTL has an option to further issue up to THB4bn of bonds. The bonds will be guaranteed by Industrial and Commercial Bank of China (Thai) Public Company Limited (ICBCT; AAA(tha)/Stable), its parent. The proceeds will be used for refinancing and for funding the expansion of the company’s auto loan portfolio.
The final ratings are contingent upon receipt of final documents conforming to information already received.
KEY RATING DRIVERS
The ratings are based entirely on an unconditional and irrevocable guarantee provided by ICBCT.
ICBCT’s ratings reflect Fitch’s belief of an extremely high probability of extraordinary support, if required, from its parent, Industrial and Commercial Bank of China (ICBC; A/Stable).
Fitch considers ICBCT to be strategically important to the parent due to its important role in allowing the group to support the rapid growth in trade and investment between Thailand and China, the high level of operational integration, past history of ordinary financial support and near-full ownership.
RATING SENSITIVITIES
Any change in the rating of the guaranteed bonds will be driven by a change in ICBCT’s National Long-Term Rating. Any changes in the ratings of the guarantor will be driven by either a negative rating action on the rating of ICBC, or a reduction in ICBC’s shareholding in or in its propensity to support ICBCT.
ICBCT’s National Long-Term Rating is the highest on the national scale and hence no upside is possible. An upgrade of Thailand’s Long-Term Local-Currency IDR, while ICBC’s ratings remain unchanged, may result in a downgrade of ICBCT’s National Ratings.
ICBCTL is 99.99%-owned by ICBCT, while ICBCT is 97.7%-owned by ICBC.
The other ratings of ICBCTL are unaffected by this action, and are as follows:
National Long-Term Rating at ‘AAA(tha)’; Stable Outlook
National Short-Term Rating at ‘F1+(tha)’
National Long-Term Rating on guaranteed bonds by ICBCT at ‘AAA(tha)’ ; Stable Outlook
National Long-Term Rating on senior unsecured bonds at ‘AAA(tha)’
National Short-Term unsecured unsubordinated debenture programme at ‘F1+(tha)’