Bangkok--3 Jun--Fitch Ratings
Fitch Ratings, Bangkok, 02 June 2016: Fitch Ratings (Thailand) has today published the 'F1+(tha)' National Short-Term Rating on Capital Nomura Securities Public Company Limited's (CNS; AA-(tha)/Stable) THB 1.5bn short-term debenture programme.
Debentures issued under the programme will have a maturity of no more than 270 days, and can be issued in separate tranches. Proceeds will be used for general corporate purposes.
KEY RATING DRIVERS
The programme is rated at the same level as CNS's National Short-Term Rating of 'F1+(tha)', as issuance under the programme constitutes unsubordinated and unsecured obligations of the company.
CNS's National Rating reflects Fitch's view that it is a strategically important subsidiary of Nomura Holdings Inc. of Japan (A-/Stable/Viability Rating: bbb). The Nomura group owns 85.8% of CNS, and there is a significant level of management control, shared branding, and operational linkages.
RATING SENSITIVITIES
CNS's National Short-Term Rating is the highest on the national scale, and hence there is no rating upside.
CNS's National Ratings may be negatively impacted by any material changes in the ability or propensity of the Nomura group to support CNS. For example, this may result from a severe deterioration in the group's credit profile, or a large reduction in the group's shareholding in CNS. However, Fitch does not expect these to occur in the short term.