Bangkok--20 Sep--Moody's Investors Service
Moody's Investors Service said today that the military coup in Thailand should have no immediate effect on its ratings of the 12 banks in Thailand (see the list below).
Moody's will closely monitor developments and assess the resulting impact - if any - on the credit profile of these banks.
Any prolonged, significant slowdown in the economy could weaken the Thai banks' ability to improve profitability and reduce non-performing assets, which are key to the strengthening of their recovering capital bases.
Political uncertainty over the past several months has already slowed Thailand's economic growth. The coup will certainly slow it further. It is still too early to tell whether the coup will have a sufficiently negative impact on the economy as to weaken the intrinsic safety and soundness of Thailand's banks.
Moody's will accordingly continue to evaluate the situation and keep the market informed of any rating impact.
For Export-Import Bank of Thailand, which is a government related issuer
(GRI), Moody's does not expect the bank's ratings - which have factored in government support - to be affected unless there is a change in the sovereign rating, a scenario that the rating agency does not contemplate at this stage.
The ratings in Thailand are:
Bangkok Bank -- Bank financial strength rating of D+, and foreign currency long-term/short-term deposit ratings of Baa1/P-2.
Bangkok Bank Public Company Ltd. (Hong Kong) -- Foreign currency subordinated debt rating of Baa2.
Bank of Ayudhya -- Bank financial strength rating of E+ (on review for possible upgrade), and foreign currency long-term/short-term deposit ratings of Baa3/P-3.
Export-Import Bank of Thailand -- Foreign currency long-term issuer rating of Baa1 (on review for possible upgrade).
Government Housing Bank of Thailand -- Bank financial strength rating of E+, and foreign currency long-term/short-term deposit ratings of Baa1/P-2.
Kasikornbank Public Company Limited -- Bank financial strength rating of D+, foreign currency long-term/short-term deposit ratings of Baa1/P-2 and foreign currency subordinated debt rating of Baa2.
Kasikornbank Public Co. Ltd (Cayman Islands) -- Foreign currency subordinated debt rating of Baa2.
Krung Thai Bank -- Bank financial strength rating of D-, and foreign currency long-term/short-term deposit ratings of Baa1/P-2.
Krung Thai Bank Public Co. Ltd, Singapore branch -- Foreign currency deposit note/preferred stock of Baa1/Ba1.
Siam City Bank Public Company Limited -- Bank financial strength rating of D and foreign currency long-term/short-term deposit ratings of Baa3/P-3.
Siam City Bank Public Co. Ltd. (Cayman Islands) -- Foreign currency senior unsecured debt/ subordinated debt ratings of Baa3/Ba1 and foreign currency short-term rating of P-3.
Siam Commercial Bank Public Company Limited -- Bank financial strength rating of D+ (on positive outlook), and foreign currency long-term/short-term deposit ratings of Baa1/P-2.
Siam Commercial Bank Public Co. (Singapore) -- Foreign currency senior unsecured debt rating of Baa1.
SME Development Bank of Thailand -- Foreign currency long-term/short-term deposit ratings of Baa1/P-2 and foreign currency long-term issuer rating of Baa1.
Standard Chartered Bank (Thai) Public Co. Ltd. -- Bank financial strength rating of D+, foreign currency long-term/short-term deposit ratings of Baa1/P-2, foreign currency long-term/short-term issuer ratings of A3/P-2, local currency long-term/short-term deposit ratings of A3/P-1, and local currency long-term/short-term issuer ratings of A3/P-1.
TMB Bank Public Company Limited -- Bank financial strength rating of D-, and foreign currency long-term/short-term deposit ratings of Baa2/P-2.
TMB Bank Public Co. Ltd. (Cayman Islands) -- Foreign currency junior subordinated debt/preferred stock ratings of Ba1/Ba2.
United Overseas Bank (Thai) Public Co Ltd -- Bank financial strength rating of D, and foreign currency long-term/short-term deposit ratings of Baa1/P-2.
Hong Kong
Leo Wah, CFA
Asst Vice President - Analyst
Financial Institutions Group
Moody's Asia Pacific Ltd.
JOURNALISTS: (852) 2916-1150
SUBSCRIBERS: (852) 2916-1121
Singapore
Beatrice Woo
VP - Senior Credit Officer
Financial Institutions Group
Moody's Singapore Pte Ltd.
JOURNALISTS: (852) 2916-1150
SUBSCRIBERS: (65) 6398-8308