Fitch Rates MBKET#s Thai Baht Subordinated Debentures #AA(tha)#

Stocks and Financial Services Press Releases Thursday January 11, 2018 16:46
Bangkok--11 Jan--Fitch Ratings

Fitch Ratings (Thailand) has today assigned a National Long-Term Rating of 'AA(tha)' to Maybank Kim Eng Securities (Thailand) Public Company Limited's (MBKET; AA+(tha)/Stable) upcoming Thai baht-denominated subordinated debentures. MBKET will issue up to THB1 billion of such debentures, and at issue, the debentures will have a tenor of one year. The firm plans to use the proceeds from the issuance to manage its own funding and liquidity requirements. This is the first rating that Fitch has assigned to a securities firm's subordinated debt in Thailand.

KEY RATING DRIVERS

Fitch has notched MBKET's subordinated debt one level below the anchor rating of 'AA+(tha)'. Subordinated noteholders rank after senior creditors in the priority of claims. The notching reflects the notes' higher loss-severity risks compared with senior unsecured instruments due to the notes' subordination to the latter. The notching also incorporates the subordinated debentures' lack of going-concern loss-absorption and equity conversion. Fitch has assigned an equity credit of 0% to the issue, since the tenor is relatively short and the instrument is not designed to be a permanent part of the company's capital structure.

The agency has used MBKET's National Long-Term Rating of 'AA+(tha)' as the anchor rating for the subordinated instrument. MBKET's National Long-Term Rating is driven by institutional support, since the Thai firm is strategically important to Malayan Banking Berhad (Maybank; A-/Stable). Maybank holds a majority stake in MBKET.

RATING SENSITIVITIES
Changes in MBKET's National Long-Term Rating would have a similar effect on the rating of the subordinated notes.

MBKET's National Long-Term Rating, in turn, is sensitive to changes in the level of institutional support, which reflects Fitch's view on Maybank's capacity and propensity to provide timely extraordinary support to MBKET in times of need.


Latest Press Release

French Facilities Services Provider Atalian Outlook Revised To Negative On Plan To Buy #B+# Rating Affirmed

PARIS (S&P Global Ratings) April 23, 2018--S&P Global Ratings said today that it had revised its outlook on La Financiere Atalian SAS (Atalian) to negative from positive. We affirmed our 'B+' long-term issuer credit rating on Atalian. At the same...

Czech Multi-Utility ENERGO-PRO #BB-# Ratings Affirmed After Refinancing An Outlook Stable

LONDON (S&P Global Ratings) April 23, 2018--S&P Global Ratings said today that it affirmed its 'BB-' long-term issuer credit rating on the Czech electricity multi-utility ENERGO-PRO a.s. (Energo-Pro). The outlook is stable. At the same time, we...

U.K.-Based Oil And Gas Exploration And Production Firm Neptune Energy Assigned #BB-# Preliminary Outlook Stable

STOCKHOLM (S&P Global Ratings) April 23, 2018--S&P Global Ratings today assigned its preliminary 'BB-' long-term issuer credit rating to U.K.-based oil and gas exploration and production company Neptune Energy Group Midco Ltd. (Neptune). The...

BOC Aviation#s Senior Unsecured Notes Rated #A-#

SINGAPORE (S&P Global Ratings) April 23, 2018--S&P Global Ratings today assigned its 'A-' long-term issue rating to a proposed issuance of senior unsecured notes by BOC Aviation Ltd. (A-/Stable/--) under the company's US$10 billion global...

[SPSF] Sumitomo Mitsui Banking Corp.#s 38th RMBS Deal Assigned #AAA (sf)# Ratings

TOKYO (S&P Global Ratings) April 23, 2018--S&P Global SF Japan Inc. (SPSF) today said it has assigned its 'AAA (sf)' ratings to the JPY / CNY44.1 billion class A1, A2, and alpha senior trust certificates (collectively the senior trust...

Related Topics