Bangkok--Dec 17--Moody's Investors Service
Moody's Investors Service has changed the outlook for Siam Commercial Bank Public Company Limited's (SCB's) D bank financial strength rating (BFSR) to positive from stable. The outlook for SCB's debt and deposit ratings remains stable. SCB's Baa1 foreigncurrency deposit rating is at Thailand's foreign currency country ceiling. Furthermore, the bank's deposit and debt ratings already
incorporate government support, lifting them above the rating level typically associated with the bank's intrinsic financial strength.
Moody's said the change in outlook reflected SCB's improved risk
management, good earnings trends and strengthening levels of capital and loan loss reserves. While we believe that some additional loan loss provisions may still be required for lingering problem loans, SCB combined levels of capital and loan loss reserves are adequate.
Moody's will be following SCB's 2005 earnings performance. SCB's BFSR
could be reviewed for upgrade if, as expected, current positive economic and earnings trends continue and retained earnings further strengthen the bank's capital and reserves. Successful defense of SCB's franchise in an increasingly competitive marketplace would also be viewed positively.
Moody's sees little downward pressure on SCB's ratings. Only a
significant deterioration in the operating environment or the payment of excessively high dividends could threaten current ratings.
SCB is Thailand's fourth largest bank. It had total assets of baht 782.5
billion (US$ 19 billion) on September 30, 2004.
Singapore
Deborah Schuler
VP - Senior Credit Officer
Financial Institutions Group
Moody's Singapore Pte Ltd.
Telephone: 65-6398-8300
Facsimile: 65-6398-8301
Singapore
Beatrice Woo
Vice President - Senior Analyst
Financial Institutions Group
Moody's Singapore Pte Ltd.
Telephone: 65-6398-8300
Facsimile: 65-6398-8301 End.