Fitch Ratings (Thailand) has affirmed the 'AAA(tha)' National Long-Term Rating on the Thai baht senior unsecured notes of Sumitomo Mitsui Banking Corporation's (SMBC; A/Negative/F1) Bangkok Branch.
KEY RATING DRIVERS
The note rating is based on SMBC's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'A', which is two notches higher than Thailand's Long-Term Local-Currency IDR of 'BBB+'. Hence, SMBC's credit profile is in line with the strongest credits in Thailand.
SMBC is one of the largest banking groups in Japan, with an extensive nationwide network, strong market share, sound capitalisation and a stable funding base. For details on SMBC's key rating drivers and rating sensitivities, please refer to the latest rating action commentary, Fitch Affirms SMFG and Subsidiaries at 'A'; Outlook Negative, dated 19 March 2021.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
There is no upside as the issue rating is at the highest point on Thailand's national rating scale.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
The rating could be downgraded if SMBC's Long-Term Foreign-Currency IDR is at or lower than Thailand's Long-Term Local-Currency IDR, such as after a multiple-notch downgrade of SMBC, though this would also be contingent on Fitch's re-assessment of SMBC's relative strengths compared with other entities on the Thai national rating scale.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
The rating of SMBC Bangkok Branch's baht senior notes is linked to SMBC's credit profile.
Additional information is available on www.fitchratings.com