Fitch Rates ICBCTL's Senior Notes 'AAA(tha)'
Fitch Ratings (Thailand) Limited has assigned ICBC (Thai) Leasing Company Limited's (ICBCTL, AAA(tha)/Stable/F1+(tha)) upcoming long-term senior unsecured notes with an issuance size of up to THB6 billion a National Long-Term Rating of 'AAA(tha)'. The notes will be issued under ICBCTL's THB30 billion medium-term note programme, which Fitch affirmed at 'AAA(tha)/F1+(tha)' on 10 September 2018.
ICBCTL's senior notes are rated at the same level as its National Long-Term Rating as they represent the company's unsecured and unsubordinated obligations.
ICBCTL's National Long-Term Rating is based on Fitch's view that the company is a core subsidiary of Industrial and Commercial Bank of China (Thai) Public Company Limited (ICBCT; AAA(tha)/Stable), as reflected by a high level of integration, history of ordinary financial support, full ownership and brand sharing.
The note ratings are sensitive to changes in ICBCTL's National Long-Term Rating, which is at the top-end of the scale and therefore has no upside.
Any changes in the perceived propensity of ICBCT to support ICBCTL could lead to rating action on the National Ratings of both ICBCTL and its senior debt. This may occur if ICBCT reduces its ownership, withdraws its financial commitment or undertakes actions indicating a significantly lower propensity to provide support. ICBCT's ratings are, in turn, sensitive to a change in its parent's (Industrial and Commercial Bank of China Limited, rated A/Stable) propensity to provide extraordinary support. However, Fitch believes this is unlikely to occur in the near term.
For full details on the rating drivers and sensitivities for ICBCT and ICBCTL, please see our previous rating action commentary.