Fitch Maintains Rating Watch Negative on Thailand#s CGS-CIMB

Stocks and Financial Services Press Releases Friday July 13, 2018 10:40
Bangkok--13 Jul--Fitch Ratings

Fitch Ratings (Thailand) has maintained the Rating Watch Negative on CGS-CIMB Securities (Thailand) Co., Ltd.'s (CGS-CIMB TH) National Long-Term Rating of 'AA-(tha)' and National Short-Term Rating at 'F1+(tha)'.

Fitch placed CGS-CIMB TH's ratings on Rating Watch Negative on 14 February 2018 following CIMB group's announcement that it agreed to sell a 50% stake in CGS-CIMB TH's parent - CGS-CIMB Securities International Pte. Ltd. (CGS-CSI) - to China Galaxy International Financial Holdings Limited (CGI). The ratings remain on Rating Watch Negative pending Fitch's review of the institutional support available to CGS-CIMB TH after the ownership change at the parent level.

KEY RATING DRIVERS

CGS-CIMB TH's board and branding has changed to reflect the change in control at its parent, CGS-CSI, since Fitch placed the company on Rating Watch Negative in February 2018. Fitch also believes there are ongoing changes in the company's strategic direction and risk management framework.

The Rating Watch Negative reflects the possibility that external support to CGS-CIMB TH may not be as strong as the support previously received from CIMB group, which has clear plans to further reduce its stake in the securities businesses. Fitch believes the ability and propensity of support from the new shareholder, CGI, remains unclear. See Fitch Downgrades CIMBS to 'AA-(tha)', on RWN; Affirms 3 Thai Subsidiaries of Foreign Banks, dated 14 February 2018, for details.

Fitch continues to assess the credit profile of CGS-CSI, which incorporates an assessment of the linkage between CGS-CSI and its shareholders, and that of CGI.
RATING SENSITIVITIES

Fitch will resolve the Rating Watch Negative on CGS-CIMB TH's ratings once Fitch completes its assessment of CGS-CSI's profile and propensity to support CGS-CIMB TH. Fitch may downgrade the ratings if it believes that joint support from CIMB group and China Galaxy group to CGS-CSI, and hence CGS-CIMB TH, is lower than the rating currently indicates.


Latest Press Release

IOU(TM) - E-Commerce Loyalty Platform on Blockchain

IOU Global, LTD is announcing the release of IOU(TM) - a revolutionary peer-to-peer (P2P) e-commerce loyalty platform developed on blockchain, allowing merchants and consumers to interact with each other in the competitive, secure, transparent and...

DDD clearing up the rumors about fake orders and investigation by the SEC, claiming the speculations untrue and unfounded.

"Do Day Dream" denies the rumors about fake orders and its being investigated by the SEC. It insists that it always ensures strict compliance with rules and regulations and has in place its external auditor that is internationally recognized while...

BQT(TM) A Fresh New Take On The P2P Exchange

BQT Technologies, LTD is announcing the upcoming closed-Beta release of the BQT(TM) Exchange Platform — a peer-to-peer (P2P) exchange with innovative hedge trade capabilities. This unique method embraces the spirit of decentralization and...

Standard Chartered Bank sees Thai Central Bank shift toward tightening Thailand strong heading into elections

Standard Chartered Bank maintains its call for robust global growth of 4.0% this year, the strongest in five years, as economic fundamentals have remained solid. Unlike in previous years, growth this year has been broad-based and synchronised across...

Shedding New Light on Pediatric Research by Integrating the Healthcare Providers of the Globe

Pediatric ConferenceSeries offers On-Site and Online medical Conferences effective from 2019 ConferenceSeries Pediatric Conferences reinforce the spirit of healthy neonates to build physically and mentally fit societies to excel in socioeconomic and...

Related Topics