Bangkok--2 May--Fitch Ratings
Fitch Ratings has assigned an expected rating of 'BBB+(EXP)' to Export-Import Bank of Thailand's (EXIM, BBB+/Stable) USD1.50 billion senior unsecured medium-term note (MTN) programme. The bank plans to use the proceeds from the issuances under the programme to fund its asset growth and for general corporate purposes.
The final rating is contingent upon the receipt of final documents conforming to information already received. The issuances will be listed in Singapore.
KEY RATING DRIVERS
Fitch rates the programme at the same level as EXIM's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'BBB+', as the issuance under the programme will constitute the bank's unsecured and unsubordinated obligations.
EXIM's ratings are equalised with the Thai sovereign Long-Term Foreign-Currency IDR, and reflect Fitch Ratings' belief that the government would provide extraordinary support to the bank. EXIM is a state policy bank established under specific legislation, and wholly owned by the Thai Ministry of Finance (MOF), which controls the bank's management and strategy. The bank has a consistent track record of capital support from the government.
RATING SENSITIVITIES
The rating on EXIM's senior unsecured MTN programme would be affected by any changes in EXIM's Long-Term Foreign-Currency IDR, which itself would be sensitive to changes in Thailand's sovereign rating. EXIM's rating could also be downgraded if the sovereign's propensity to support the bank weakens. This may happen if the state materially reduces its shareholding or if the bank changes its legal status. However, Fitch deems such events as unlikely in the medium term.