Fitch Affirms CIMB Thai Bank at #AA-(tha)#; Outlook Stable

Entertainment Press Releases Tuesday September 3, 2019 17:02
Bangkok--3 Sep--Fitch Ratings

Fitch Ratings has affirmed CIMB Thai Bank Public Company Limited's (CIMBT) National Long-Term Rating and the rating on its THB2 billion 2.44% notes due 2020 at 'AA-(tha)'. The Outlook is Stable. The notes are issued by CIMB Thai Auto Company Limited (CIMBT Auto) and are guaranteed unconditionally by CIMBT.

KEY RATING DRIVERS
NATIONAL RATINGS AND SENIOR DEBT

Fitch uses its institutional-support framework to rate CIMBT. The agency believes the bank would benefit from extraordinary support from its parent, CIMB Bank Berhad (CIMB). Fitch sees the Thai subsidiary as strategically important to the parent, which has a 94.8% stake in CIMBT, exercises management control and integrates the subsidiary closely with the group. The subsidiary also shares its parent's brand.

The senior short-term debt programme rating is equalised with CIMBT's National Short-Term Rating, as Fitch would regard the default of any debt instrument under the programme as a default of the bank itself.
GUARANTEED DEBT
CIMBT's unconditional and irrevocable guarantee on CIMBT Auto's bond drives the instrument's rating. CIMBT directly owns 99.99% of CIMBT Auto.
RATING SENSITIVITIES
NATIONAL RATINGS AND SENIOR DEBT

Fitch would downgrade CIMBT's National Long-Term Rating if the credit profile of its parent was to deteriorate or if the parent bank was to lower its propensity to provide extraordinary support. This could happen if the parent significantly reduced its shareholding or withheld financial and operational commitments to its Thai subsidiary. Conversely, Fitch could take positive rating action if the parent was to demonstrate greater capacity or propensity to provide support, although we do not expect this to happen in the near term.

The senior debt ratings of CIMBT are sensitive to changes in the bank's National Ratings.
GUARANTEED DEBT
The rating on CIMBT Auto's guaranteed bond would be directly affected by changes in CIMBT's National Long-Term Rating.
Additional information is available on www.fitchratings.com

Latest Press Release

Unico Studio ปล่อยเกมฝึกสมองสุดฮิตทาง AppGallery

เกมฝึกสมองในรูปแบบสนุกสนาน Brain Test: Tricky Puzzles และ Brain Test 2: Tricky Stories เปิดให้ดาวน์โหลดแล้วทาง AppGallery ของหัวเว่ย เกมสุดฮิต Brain Test: Tricky Puzzles และ Brain Test 2: Tricky Stories มียอดดาวน์โหลดกว่า 300 ล้านครั้ง และให้บริการใน 19...

Unico Studio Launches Popular Brain Test Games on AppGallery

The well-loved mobile puzzle games are now available for download from Huawei's official app marketplace AppGallery. Offering a unique and colourful approach to fun, puzzle-based games, Brain Test: Tricky Puzzles and Brain Test 2: Tricky Stories are now...

Empire State Building to Shine in a Red Heartbeat to Honor President-Elect Joe Biden's COVID-19 Memorial

Music-to-Light Show Synced to Alicia Keys' 'Empire State of Mind' Returns With Simulcast on iHeartMedia New York's Z100 and the iHeartRadio App The Empire State Building today announced its participation in President-Elect Biden's plan to memorialize...

TikTok invites fans in Thailand to join the exclusive 'TikTok Stage Connect - Seon-ho's Favorite' event and interact with the actor on January 17, 2021

TikTok, the leading destination for short-form mobile videos, and SALT Entertainment announced that actor Kim Seon-ho will hold his first global online fan meeting exclusively on the platform, on January 17 at 6 PM THAI TIME. Viewers can tune in to the...

ALL-NEW PXG 2021 0211 Collection Delivers Red Hot Performance at A Price That Will Knock Your Socks Off

PXG Expands its Global Offerings with Game-changing New Driver, Fairway Wood, Hybrid, and Iron Technologies PXG, the global golf equipment powerhouse, is all about the performance - crazy distance, unbelievable forgiveness, huge sweet-spots, an...

Related Topics