Bangkok--7 May--TMB
The downgrading of TMB Bank’s US$200 million foreign currency hybrid tier 1 (HBT1) issued in 2006 from B1 to B3 by Moody’s is not related to the Bank’s overall performance which is growing stronger, Mr. Boontuck Wungcharoen, TMB CEO said today.
Mr. Boontuck said the downgrading was attributed to Moody’s methodological change in rating banks’ hybrid and subordinated debt securities where systemic support has been taken out as a rating factor. Consequently, ratings of all securities of similar types issued globally are affected by this revision by Moody’s.
Mr. Boontuck emphasized, “The downgrading of HBT1 does not affect TMB’s main ratings currently at investment grade of Baa3/P-3 with stable outlook. TMB continues to maintain a strong capital position with a capital adequacy ratio (CAR) of 18.6%, calculated with the inclusion of the subordinated debts issued in April 2010. The ratio is comfortably higher than the minimum requirement of 8.5% set by the Bank of Thailand.”
Mr. Boontuck added that the TMB’s asset quality continues to improve with NPL ratio down to 9.5% on the back of the strengthened credit management platform and the NPL sales of THB9.4 billion in April 2010, in line with the Bank’s plan to reduce NPL and improve asset quality. In the first quarter of 2010, the Bank achieved a net profit of THB707 million or a 62% rise from the same period last year.
Currently, TMB has total assets of THB560 billion, with Ministry of Finance and ING as major shareholders.