Medium Term Notes blog update is a copy of a press release from Fitch Ratings and found on Reuters.
Fitch Ratings is one of the three nationally recognized statistical rating organizations designated by the U.S. Securities and Exchange Commission. Fitch Ratings’ long-term credit ratings are assigned on an alphabetic scale from ‘AAA’ to ‘D’.
Fitch Ratings has assigned TMB Bank Public Company Limited’s (TMB; BBB-/Stable) CNY600m three-year senior unsecured notes due March 2018 a final rating of ‘BBB-‘. The notes are issued under TMB’s USD3.0bn euro medium-term note (EMTN) programme, and are issued by the bank’s Cayman Islands branch. The EMTN programme has been rated ‘BBB-‘. The rating action follows the completion of the bond issue, as well as the receipt of final documents conforming to information previously received. The final rating is the same as the expected rating assigned on 2 March 2015. KEY RATING DRIVERS The notes are rated at the same level as Thailand-based TMB’s EMTN programme and Long-Term Foreign-Currency Issuer Default Rating (IDR) of ‘BBB-‘, as they represent unsecured and unsubordinated obligations of the bank. TMB’s IDR reflects its stand-alone credit strength. TMB is Thailand’s seventh-largest commercial bank by assets as of December 2014, and its rating is supported by continued improvements in its financial performance. RATING SENSITIVITIES The rating on the senior unsecured notes would be directly impacted by any changes in TMB’s EMTN which, in turn, would be affected by changes in the bank’s IDR. TMB’s ratings could be hurt by a major deterioration in its financial performance, such as in a weaker economic environment, or from an increase in the bank’s risk appetite. Meanwhile, the bank’s ability to maintain or improve its financial performance and a clear strengthening of its domestic franchise would be positive to the ratings.
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