Fitch Rates Bangkok Bank#s Proposed Basel III Tier 2 USD Notes #BBB(EXP)#

Stocks and Financial Services Press Releases Monday September 9, 2019 14:08
Bangkok--9 Sep--Fitch Ratings

Fitch Ratings has assigned Bangkok Bank Public Company Limited's (BBL; BBB+/Stable/bbb+) proposed US dollar denominated Basel III-compliant Tier 2 subordinated notes an expected rating of 'BBB(EXP)'. The notes will be issued under BBL's global medium-term note (GMTN) programme.

The final rating is subject to the receipt of final documentation conforming to information already received.
KEY RATING DRIVERS

The proposed Tier 2 notes are rated at one notch below the anchor rating, which is BBL's Viability Rating (VR) of 'bbb+'. This reflects the notes' subordinated status and higher loss-severity risks relative to senior unsecured instruments. The non-viability trigger is defined as emergency capital assistance from the central bank or any other empowered government agency, in line with other Basel III Tier 2 notes issued by Thai banks. There is no mandatory full write-down at non-viability.

No additional notching has been applied as the notes do not have any going-concern loss-absorption features. The Tier 2 notes are senior to all classes of equity securities, including preference shares and Tier 1 capital securities. The notes will rank pari passu with all subordinated debt issued by BBL and qualify as Tier 2 capital securities.

BBL's IDR is driven by its standalone credit profile , which is based on the bank's strong domestic franchise, stable funding and liquidity as well as sound capitalisation. BBL has consistently maintained its strong market positions in the large-corporate-client segment and in international banking. The rating also reflects BBL's conservative management style relative to domestic peers.

RATING SENSITIVITIES
Any change to BBL's VR, would have a similar effect on the notes' ratings as that is the anchor rating from which the notes are notched down.

For full details on BBL's key rating drivers and sensitivities, see the most recent rating action commentary " Fitch Affirms Bangkok Bank at 'BBB+' and 'AA+(tha); Outlook Stable", published 12 April 2019 and available at https://www.fitchratings.com.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of 3 - ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity.

For more information on our ESG Relevance Scores, visit www.fitchratings.com/esg.
Additional information is available on www.fitchratings.com

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