Bangkok--21 Jun--Fitch Ratings
Fitch Ratings (Thailand) Limited has today revised the rating Outlook on Bangkok Mass Transit System Public Company Limited's (BTSC) guaranteed debentures due in August 2016 to Negative from Stable. Fitch has affirmed the National Long-Term Rating on the guaranteed debentures at 'AAA(tha)'.
The Outlook revision follows the similar revision in the Outlook of the debentures' guarantor, Bank of Ayudhya Public Company Limited (BAY), on 17 June 2016 (see Fitch Revises Outlooks on Bank of Ayudhya, Easy Buy to Negative), which came after the Outlook of BAY's Japanese parent, Bank of Tokyo-Mitsubishi UFJ Ltd (BTMU), was revised to Negative on 16 June 2016.
KEY RATING DRIVERS
Guarantee from BAY: The ratings of the debentures are fully based on an unconditional and irrevocable guarantee of principal and interest of the debentures provided by BAY. As a result, the debentures are rated at the same level as the guarantor, BAY.
RATING SENSITIVITIES
Negative: Future developments that may, individually or collectively, lead to negative rating
action include:
- Negative rating action on BAY
Positive: Future developments that may, individually or collectively, lead to positive rating
action include:
- Positive rating action on BAY
For the ratings of BAY, the following sensitivities were outlined by Fitch in its Rating Action Commentary of 17 June 2016.
Any changes in the ratings or credit profile at BAY's institutional shareholder, BTMU, would similarly affect the National Long-Term Rating of BAY.
An indication of material weakening in BTMU's propensity to provide extraordinary support to BAY could result in downgrade of BAY's National Long-Term Rating. For example, this could be indicated by a significant reduction in ownership or level of commitment to provide financial support. However, Fitch does not view this as likely in the medium term.