Bangkok--18 Mar--Fitch Ratings
Fitch Ratings has confirmed TMB Bank Public Company Limited's (TMB; BBB-/Stable) USD3.0bn euro medium-term note (EMTN) programme rating at 'BBB-', following an update to the terms of the programme.
KEY RATING DRIVERS
The programme is rated at the same level as TMB's Long-Term Issuer Default Rating (IDR) of 'BBB-'. Fitch notes that there is no assurance that notes issued in the future under the programme will be rated the same as the programme rating, as the programme also permits the issuance of subordinated notes.
TMB's Long-Term IDR is based on its standalone financial strength, which is reflected in its Viability Rating (VR). TMB's VR reflects its improved financial performance (particularly in asset quality and profitability), and sound capital and liquidity positions. TMB is the seventh largest commercial bank in Thailand, with a market share of around 5% in loans and deposits.
RATING SENSITIVITIES
Any change to TMB's Long-Term IDR would have a similar effect on the EMTN programme's rating.
TMB's IDR could face downward pressure if the bank's key credit profile measurements in asset quality and leverage deteriorate sharply. There could be an upgrade in the IDR if the bank can show that recent improvements in reserve coverage, liquidity and capital can be sustained.
The other ratings of TMB are unaffected by this action, and are as follows:
Long-Term IDR: 'BBB-'; Outlook Stable
Short-Term IDR: 'F3'
Viability Rating: 'bbb-'
Support Rating: '3'
Support Rating Floor: 'BB+'
National Long-Term Rating: 'A+(tha)'; Outlook Stable
National Short-Term Rating: 'F1(tha)'
Long-term foreign-currency senior unsecured debt: 'BBB-'
Basel III Tier 2 subordinated debt rating: 'A(tha)'
Legacy Basel II subordinated debt rating: 'A(tha)'