Bangkok--15 Nov--Fitch Ratings
Fitch Ratings (Thailand) has affirmed the national ratings on the Thai baht-denominated senior unsecured notes of Mizuho Bank, Ltd. (MHBK; A-/Negative/F1) and Sumitomo Mitsui Banking Corporation (SMBC; A/Negative/F1) at 'AAA(tha)'.
KEY RATING DRIVERS
The national ratings of the notes are based on the Long-Term Foreign-Currency Issuer Default Ratings (IDRs) of MHBK and SMBC of 'A-' and 'A', respectively. These IDRs are above Thailand's Long-Term Local-Currency IDR of 'BBB+' and correspond to 'AAA(tha)', the highest rating on Thailand's National Rating scale.
For additional information on the banks' key rating drivers and rating sensitivities, see Fitch Affirms Ratings on Major Japanese Banks, dated 15 November 2016.
RATING SENSITIVITIES
The 'AAA(tha)' ratings on the banks' senior notes are already the highest on the national scale, so there are no possible upgrades from the current ratings.
A downgrade could be triggered if the Long-Term Foreign-Currency IDR of either MHBK or SMBC is lower than Thailand's Long-Term Foreign-Currency IDR, whether by a downgrade of the banks' ratings or an upgrade of Thailand's rating. However, Fitch deems both scenarios improbable in the near term due to the rating gaps between the banks and Thailand.