Bangkok--29 May--Fitch Ratings Fitch Ratings (Thailand) Limited has today revised the rating Outlook on Kiatnakin Bank Public Company Limited (KK) to Stable from Negative, while affirming all its ratings. At the same time, the agency affirmed the ratings of TISCO Bank Public Company Limited (TISCO) and Siam Commercial Leasing Public Company Limited (SCBL). The affected ratings are listed below: - KK: affirmed at National Long-term 'BBB+(tha)' and National Short-term 'F2(tha)'; Outlook changed to Stable from Negative; - TISCO: affirmed at National Long-term 'A(tha)' with Stable Outlook and National Short-term 'F1(tha)'; - SCBL: affirmed at National Long-term 'A(tha)' with Stable Outlook and National Short-term 'F1(tha)'. Despite the weak operating environment in 2007 and still challenging economic outlook in 2008, these major auto finance lenders' performances have remained relatively stable. Profitability and asset quality measures have been maintained, and capital buffers, while falling, remain strong. First quarter results for these lenders indicate relatively strong performance although further economic shocks such as the spike in oil and food prices could see renewed asset quality pressures. The revision of KK's rating Outlook reflects improved asset quality trends and stable profitability, despite the weak economic environment. KK is still subject to higher provisioning risks, compared to peers, due to its larger exposure to property developers and used-car financing. Increasing competition and rising funding costs remain key risks in the medium term. TISCO's ratings reflect its strong profitability, asset quality and capital, as well as a conservative management track record. It is also subject to greater funding pressures than the larger banks. TISCO plans to restructure the group's shareholding structure by year-end. A holding company will be set up and listed, while TISCO will transfer its shares in subsidiaries to the holding company and be de-listed. TISCO will function as the operating bank entity. The transfer of securities and asset management shareholdings, which account for about 30% of revenues, will impact TISCO's reported earnings, but future earnings performance should be more stable and the bank's capital ratios should improve. SCBL recently announced a plan to shift new retail hire-purchase lending business to Siam Commercial Bank Public Company Limited (SCB, rated 'AA(tha)'/Outlook Stable/'F1+(tha)'). SCBL will now mainly act as the servicing vehicle for SCB's 60-days-plus delinquent borrowers and its remaining auto hire-purchase portfolios. SCBL will also continue wholesale hire-purchase lending to dealerships and corporate fleets. The ratings of SCBL are based primarily on the strong operational, financial and capital support of its parent, SCB. Disclosure: TISCO Asset Management Company Limited (of which TISCO holds 99.9%) owns 10% of the shares in Fitch Ratings (Thailand) Limited. No shareholder, other than Fitch Ratings Limited of the UK, is involved in the day-to-day operation of, or credit rating reviews undertaken by, Fitch Ratings (Thailand) Limited. Contacts: Darunee Peanmanakit, Vincent Milton, Bangkok +662 655 4755. Note to Editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(tha)' for National ratings in Thailand. Specific letter grades are not therefore internationally comparable. Media Relations: Shivani Sundralingam, Singapore, Tel: + 65 6796 7215. Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.