Fitch Rates MTN Programme of Thailand's EXIM Final 'BBB+'

Tuesday 15 May 2018 17:20
Fitch Ratings-Bangkok/Singapore-15 May 2018: Fitch Ratings has assigned a final rating of 'BBB+' to Export-Import Bank of Thailand's (EXIM, BBB+/Stable) USD1.50 billion senior unsecured medium-term note (MTN) programme. The bank plans to use the proceeds from the issuance under the programme to fund its asset growth and for general corporate purposes.

The assignment of the final rating follows receipt of final documents conforming to the information already received. The final rating is the same as the expected rating assigned on 2 May 2018.

KEY RATING DRIVERS

Fitch rates the programme at the same level as EXIM's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'BBB+', as the issuance under the programme will constitute the bank's unsecured and unsubordinated obligations.

EXIM's ratings are equalised with the Thai sovereign Long-Term Foreign-Currency IDR, and reflect Fitch Ratings' belief that the government would provide extraordinary support to the bank. EXIM is a state policy bank established under specific legislation, and wholly owned by the Thai Ministry of Finance (MOF), which controls the bank's management and strategy.

RATING SENSITIVITIES

The rating on EXIM's senior unsecured MTN programme would be affected by any changes in EXIM's Long-Term Foreign-Currency IDR, which itself would be sensitive to changes in Thailand's sovereign rating. EXIM's rating could also be downgraded if the sovereign's propensity to support the bank were to weaken. This may happen if the state were to reduce its shareholding significantly or if the bank changes its legal status. However, Fitch deems such events as unlikely in the medium term.