Bangkok--28 Mar--Fitch Ratings
Fitch Ratings (Thailand) Limited has assigned a National Long-Term Rating of 'AAA(tha)' to ICBC (Thai) Leasing Company Limited's (ICBCTL; AAA(tha)/Stable/F1+(tha)) upcoming senior unsecured debentures of up to THB5 billion. The debentures will be offered in tranches with tenors of up to five years.
At the same time, Fitch has assigned a National Short-Term Rating of 'F1+(tha)' to ICBCTL's upcoming short-term senior unsecured debenture programme of up to THB20 billion on a revolving basis. Each issuance under the programme will have a maturity of up to 270 days.
The proceeds will be used for either refinancing or funding ICBCTL's general operations.
KEY RATING DRIVERS
ICBCTL's senior unsecure debentures and short-term debenture programme are rated at the same level as the company's National Long-Term Rating and National Short-Term Rating of 'AAA(tha)' and 'F1+(tha)', respectively. This follows Fitch's criteria, as the debentures represent the issuer's unsecured and unsubordinated obligations.
ICBCTL's ratings are equalised with those of its parent, Industrial and Commercial Bank of China (Thai) Public Company Limited (ICBCT; AAA(tha)/Stable/F1+(tha)), to reflect Fitch's view that ICBCTL forms a key part of the bank's strategy and is a core subsidiary of the parent bank.
RATING SENSITIVITIES
The National Ratings of ICBCTL's long-term senior unsecured debenture and short-term debenture programme are currently at the highest level on Thailand's National Rating scale. Hence, no rating upside is possible. A downgrade of ICBCTL's National Ratings could have a similar effect on the National Ratings of its senior debt.
Any changes in the perceived propensity of ICBCT to provide extraordinary support to ICBCTL could result in a change to the National Ratings of both ICBCTL and its senior debt. For example, a significant reduction in ownership or level of commitment to provide financial support could indicate a weakening in support propensity, with a negative effect on the ratings. However, Fitch does not view this to be likely in the near term.
The other ratings of ICBCTL are unaffected by this action, and are as follows:
- National Long-Term Rating: 'AAA(tha)'; Outlook Stable
- National Short-Term Rating: 'F1+(tha)'
- National Long-Term Rating of guaranteed bonds by ICBCT: 'AAA(tha)'; Outlook Stable
- National Long-Term Rating of senior unsecured bonds (existing bonds): 'AAA(tha)'
- National Short-Term Rating of unsecured unsubordinated debenture programme (existing programme): 'F1+(tha)'