Bangkok--28 May--Fitch Ratings
Fitch Ratings (Thailand) Limited has assigned ICBC (Thai) Leasing Company Limited’s (ICBCTL; AAA(tha)/Stable) THB1.937bn three-year, THB1.790bn four-year, and THB4.873bn five-year guaranteed bonds final National Long-Term Ratings of ‘AAA(tha)’. The Outlook is Stable. The bonds are guaranteed by Industrial and Commercial Bank of China (Thai) Public Company Limited (ICBCT; AAA(tha)/Stable), its parent.
The rating action follows the completion of the bond issues as well as the receipt of final documents conforming to information previously received. The final rating is the same as the expected rating assigned on 30 April 2014.
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 bonds guaranteed 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)’