Bangkok--9 Nov--TRIS Rating TRIS Rating Co., Ltd. has affirmed the company rating of TISCO Bank PLC (TISCO) and the ratings of its senior debentures at “A” with “stable” outlook. The ratings reflect TISCO’s capable management team, well-diversified sources of income, good asset quality, a strong market position in auto hire purchase lending, and ability to sustain profitability. The ratings take into account TISCO’s higher financial liquidity and flexibility, and long-term opportunities in banking business. However, the ratings are constrained by its limited distribution channels, compared with large banks and the intense competition environment in auto hire purchase business, which may impact its long-term competitiveness. The “stable” outlook reflects the likelihood that TISCO will deliver medium-term financial performance as expected and that the commercial banking business platform will benefit the bank in terms of expanded scope of business and financial flexibility and liquidity. The bank’s good risk management system will help mitigate future downside risks from the uncertain economic and business environment. TRIS Rating reported that in terms of asset size, TISCO is ranked twelfth among 14 Thai universal banks with a market share of 1.4% as of the first half of 2007. TISCO’s lending portfolio accounted for 79% of total assets, posts consistent growth with the 5-year compound average growth rate of 18%. With more than 30 years of experience in the industry, TISCO has developed a proficient management team under a conservative management style that has enabled it to grow assets in niche markets. TISCO has diversified into fee-based income businesses in asset management and the securities business. As of June 2007, TISCO’s revenue structure in interest income to non-interest income was recorded at 78:22. TRIS Rating said that in terms of asset quality, TISCO focuses on developing a good risk management system in order to control asset quality, which is reflected in TISCO’s ratio of classified loans (sub-standard, doubtful and doubtful loss) to total loans of 3.3%, which was far below industry average for the 14 universal banks of 9.35% as of June 2007. TISCO’s non-performing assets (classified loans with more than three months pass due, outstanding amount of troubled debt restructuring and foreclosed property) were 0.5 times its capital fund and allowance for loan losses, lower than the industry average of 0.9 times as of June 2007. As TISCO has a good risk model, the bank has already applied IRB approach for BASEL II implementation with the Bank of Thailand (BOT). The bank has invested in the systems of a universal banking platform since the first half of 2005, and is trying to penetrate into the retail market by leveraging its subsidiaries and providing more financial products and services. TISCO has launched various products and services after upgrading to be a universal bank in 2005. Some of TISCO’s new offerings include: ATM service (online retail fund transfer (ORFT) and ATM buffet withdrawal), new deposits (tiered rate savings account and tax-free recurring deposits); TISCO direct card — all in 1 (electronic slip for deposits and withdrawal, ATM cards); bill payment — pay at post, bancassurance (auto-loan protection); retail loan package; cash management services; and all purpose loans to new clients. The plan to target more retail customers will help the bank mobilize cheap costs of funds in the future, said TRIS Rating