Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's concludes review on four Thai banks; assigns Counterparty Risk Assessments to 10 banks

05 Jun 2015

Actions follow conclusion of Moody's methodology-related review and revision of government support considerations

Singapore, June 05, 2015 -- Moody's Investors Service has concluded its rating reviews on four Thai banks and assigned counterparty risk assessments (CR Assessments) to 10 banks in the same system.

Moody's reviews on the ratings of Bangkok Bank Public Company Limited (BBL), KASIKORNBANK Public Company Limited (KBank), Siam Commercial Bank Public Company Limited (SCB) and United Overseas Bank (Thai) Public Co Ltd (UOBT) were initiated on 18 March 2015 following the publication of Moody's new bank rating methodology, and include revisions in Moody's government support assumptions for these banks (see press release at http://www.moodys.com/viewresearchdoc.aspx?docid=PR_321005).

Moody's has downgraded the long term local currency bank deposit ratings of KBank and SCB to Baa1 from A3 and downgraded the ratings for the senior unsecured debt and senior unsecured medium term note (MTN) program for BBL, KBank and SCB to Baa1 and (P)Baa1 from A3 and (P)A3.

At the same time, Moody's has affirmed the foreign currency bank deposit ratings, the baseline credit assessment (BCA) and the Adjusted BCA of BBL, KBank and SCB at Baa1/P-2, baa2 and baa2. In the case of BBL, HK Branch and KBank (CI), Moody's has affirmed the subordinated debt ratings at Baa3 and withdrawn the stable ratings outlook. All other short-term ratings for the three banks have been affirmed at P-2.

Moody's has also affirmed the Baa1/P-2 foreign currency deposit ratings of UOBT, and upgraded the bank's BCA to ba1 from ba2. UOBT's adjusted BCA — incorporating affiliate support — has been confirmed at baa1.

Furthermore, Moody's has affirmed the local and foreign currency bank deposits, senior unsecured MTN program ratings, the BCA and Adjusted BCA of Krung Thai Bank Public Company Limited (KTB) at Baa1/P-2, (P)Baa1, ba1 and ba1 respectively. In the case of KTB, Cayman Island branch, Moody's has affirmed the senior unsecured debt, senior unsecured MTN program and other short-term ratings at Baa1, (P)Baa1 and (P)P-2 respectively. In the case of KTB, Singapore branch Moody's also affirmed the ratings on the bank's B1(hyb) non-cumulative preference stock and withdrawn the stable ratings outlook.

In addition, Moody's has assigned CR Assessments to the operating bank subsidiaries of 10 banks — and their branches where applicable — in line with Moody's new bank rating methodology. The CR Assessments are as follows:

(1) BBL -- Baa1(cr)/P-2(cr);

(2) Bank of Ayudhya -- Baa1(cr)/P-2(cr);

(3) CIMB Thai Bank Public Company Limited -- Baa1/(cr)/P-2(cr);

(4) Government Housing Bank of Thailand -- Baa1(cr)/P-2(cr);

(5) KBank -- Baa1(cr)/P-2(cr);

(6) KTB -- Baa1(cr)/P-2(cr);

(7) SCB -- Baa1(cr)/P-2(cr);

(8) SME Development Bank of Thailand (SME) -- Baa2/(cr)/P-2(cr);

(9) TMB Bank Public Company Limited -- Baa1(cr)/P-2(cr); and

(10) UOBT - A3(cr)/P-2(cr)

A list of all affected ratings for the 10 Thai banks can be found at the end of this press release.

Moody's has withdrawn the outlooks on all junior instrument ratings for its own business reasons. Please refer to Moody's Investors Service's Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com.

Outlooks, which provide an opinion on the likely rating direction over the medium term, are now assigned only to long-term deposit, issuer and senior unsecured debt ratings.

The outlook on all the long-term deposit, issuer and senior unsecured debt ratings — where applicable — for these banks is stable.

Today's actions reflect the new aspects of Moody's bank rating methodology published on 16 March 2015 (see "Banks", http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_179038 ).

RATINGS RATIONALE

The new bank rating methodology includes a number of elements that Moody's has developed to help accurately predict bank failures and determine how each creditor class is likely to be treated when a bank fails and enters resolution. These new elements capture insights gained from the crisis and the fundamental shift in the banking industry and its regulation.

In terms of the application of Moody's new methodology to Thai banks, Moody's rating actions reflect the following considerations: 1) Moody's view of Thailand's "Moderate" macro profile; 2) the banks' strong core financial ratios; and 3) revisions in Moody's government support assumptions for these banks.

1) Thailand's "Moderate" macro profile

Because the banks' operate domestically, they benefit from Thailand's diversified and competitive economy, and the very strong financial position of the Thai government (Baa1 Stable).

However, the country is moderately susceptible to event risk, driven by its deeply polarized domestic politics. In addition, high levels of private-sector debt to GDP and rapid growth in consumer borrowing over the past three years undermine Thailand's credit conditions and exert pressure on the banks' asset quality.

2) The banks' strong core financial ratios

The average BCA of Moody's-rated Thai banks is ba1, and takes into account the banks' strong core financial metrics, including the fact that their aggregate non-performing loan (NPL) ratios have improved over the years, as the banks resolved their legacy NPLs, built strong loss absorbing buffers and maintained stable profitability metrics.

The BCAs also incorporate downside risks to the banks' asset quality in a challenging economic environment.

(See below for outlines of the analytical considerations for the individual banks covered in this press release.)

3) Revisions in Moody's government support assumptions for Thai banks

Previously, when imputing government support assumptions in bank ratings, deposit and senior unsecured debt ratings were, in certain cases, positioned above their relevant sovereign rating. This positioning reflected an expectation that the extensive policy tools available to central banks to support domestic banks could result in a capacity for the sovereign to provide support to its country's banks that is higher than its own creditworthiness.

However, insights gained from historical experiences showed that when a crisis is prolonged, policy tools are insufficient to restore confidence in the system, and an outright recapitalization of the banks is necessary.

ASSIGNMENT OF CR ASSESSMENTS

Moody's has also assigned CR assessments to 10 Thai banks and their branches.

CR assessments are opinions of how counterparty obligations are likely to be treated if a bank fails, and are distinct from debt and deposit ratings in that they: (1) consider only the risk of default rather than expected loss; and (2) apply to counterparty obligations and contractual commitments rather than debt or deposit instruments.

A CR assessment is an opinion of the counterparty risk related to a bank's covered bonds, contractual performance obligations (servicing), derivatives (e.g., swaps), letters of credit, guarantees and liquidity facilities.

CR Assessments take into account the issuer's standalone strength, as well as the likelihood of affiliate and government support in the event of need and reflect the anticipated seniority of these obligations in the liabilities hierarchy.

CR Assessments also incorporate other steps authorities can take to preserve the key operations of a bank should it enter a resolution.

For Thai banks, in most cases, the CR Assessment, prior to government support, is positioned one notch above the Adjusted BCA. Moody's then assigns government support assumptions, in line with Moody's support assumptions on deposits and senior unsecured debt. Such assignments reflects Moody's view that any support provided by governmental authorities to a bank, and which benefits senior unsecured debt or deposits, is very likely to benefit operating activities and obligations reflected by the CR Assessments.

Such a view is consistent with Moody's belief that governments are likely to maintain the banks' operations as a going concern to reduce contagion and preserve the banks' critical functions.

The CR Assessment for eight Thai banks is in-line with the sovereign rating of Baa1. In the case of SME, its ratings already benefit from multiple notches of government support. Moody's has therefore assigned a Baa2(cr)/P-2(cr) CR Assessment to the bank, in line with its deposit and issuer ratings.

In the case of UOBT, the CR Assessment of A3(cr)/P-2(cr) is positioned one notch above the bank's Adjusted BCA of baa1.

SPECIFIC ANALYTICAL FACTORS RELATED TO THE FIVE THAI BANKS

DOWNGRADE OF LONG-TERM RATINGS, AFFIRMATION OF SUBORDINATED DEBT RATINGS AND AFFIRMATION OF BCA/ADJUSTED BCA OF BBL, KBANK AND SCB, AS APPLICABLE

Moody's downgrade of the long term local currency bank deposit ratings of KBank and SCB to Baa1 from A3 and senior unsecured debt and senior unsecured medium term note (MTN) program ratings of BBL, KBank and SCB to Baa1 and (P)Baa1 from A3 and (P)A3, is driven by the change in Moody's view — as reflected in the publication of Moody's updated bank rating methodology on 16 March 2015 — that the capacity for government support is limited to a government's bond rating. Moody's previous assumption was that banks in Thailand could benefit from additional support through other policy tools.

The rating actions therefore follow the publication of Moody's bank rating methodology on 16 March 2015.

The affirmation of the BCAs and adjusted BCA of BBL, KBank and SCB takes into account their dominant position in the Thai banking system, backed by their stable asset quality and robust loss absorbing buffers. The long-term ratings of the three banks take into account the very high probability of support from the Government of Thailand. This results in a one-nocth uplift from the BCAs.

As for the affirmation of the Baa3 subordinated debt ratings of BBL, HK Branch and KBank (CI), the ratings decision takes into account the affirmation of the banks' adjusted BCA. The ratings of these instruments do no incorporate any uplift for government support and are rated one notch below the bank's adjusted BCA.

AFFIRMATION OF KTB'S LONG-TERM RATINGS, AND AFFIRMATION OF ITS SUBORDINATED DEBT RATING AND BCA/ADJUSTED BCA

Moody's affirmation of KTB's Baa1 deposit ratings reflects Moody's assumption of a very high probability of government support. Moody's assumption of government support results in a three-notch uplift of the bank's deposit ratings from its BCA of ba1.

KTB's BCA takes into account improvements in the bank's credit profile over the past 18 months, supported by rising loss absorption buffers, and lower credit costs.

Looking ahead, although Moody's anticipates a potential uptick in systemwide NPLs, due to the continued difficult operating environment, Moody's also anticipates that KTB's position as the preferred bank of civil servants and a key provider of credit to state-owned enterprises will contain the extent of any such deterioration in its asset quality.

The affirmation of KTB, Singapore Branch's B1(hyb) non-cumulative preference stock takes into account the affirmation of the bank's adjusted BCA of ba1. The rating of this instrument does not incorporate any uplift for government support and is rated three notches below the bank's adjusted BCA.

AFFIRMATION OF UOBT'S LONG-TERM RATINGS AND RAISING OF ITS BCA

Moody's affirmation of UOBT's Baa1 long-term foreign currency deposit ratings incorporates Moody's expectation of a very high likelihood that UOBT will benefit from support from its immediate parent, United Overseas Bank Limited (Aa1 stable, aa3). As a result, the final Baa1 rating benefits from a three-notch uplift from UOBT's BCA of ba1. The bank's adjusted BCA, incorporating affiliate support, is at baa1.

Moody's expectation of support is based primarily on UOBT's long-term strategic importance to United Overseas Bank's regional growth strategy and the parent's effective control of UOBT's board and management. UOBT is 99.7%-owned by United Overseas Bank.

The raising of UOBT's BCA to ba1 from ba2 takes into account the bank's healthy capital position, improved asset quality and loss absorbing buffers.

On balance, the BCA also factors in the bank's vulnerabilities, which include its high cost-to-income ratio and limited earnings diversification.

In addition, Moody's expects some pressure on the bank's asset quality, because of its exposure to small- and medium-sized enterprises and the retail sector. Both these segments are negatively affected by the general slowdown in the Thai economy. Nonetheless, Moody's notes that these borrowers' ability to service their debt is supported by the accommodative policy adopted by the Bank of Thailand (BOT).

WHAT COULD CHANGE THE RATINGS UP

BBL

BBL's senior unsecured debt and deposit ratings could be upgraded if Thailand's sovereign rating is upgraded.

Upward pressure on the bank's BCA could develop if there is a material improvement in the bank's standalone creditworthiness, supported by a stable and predictable operating environment.

Specifically, an upward revision of the bank's BCA could result, if its: (1) internal capital generation capacity and retained earnings levels improve, and if it maintains higher capitalization levels; and/or (2) NPLs as a proportion of gross loans fall below current levels, and if it maintains higher levels of provisioning; and/or (3) credit risk concentration in terms of single borrowers and industry sectors reduces materially.

KBANK

KBank's senior unsecured debt and deposit ratings could be upgraded if Thailand's sovereign rating is upgraded.

Upward pressure on the bank's BCA could develop if there is a material improvement in the bank's standalone creditworthiness, supported by a stable and predictable operating environment.

Specifically, an upward revision of the bank's BCA could result, if it: (1) lowers its gross NPL levels and increases its provisioning and/or capital levels consistently; and/or (2) continues to reduce its credit concentration in single borrowers and industry sectors.

KTB

KTB's debt and deposit ratings could be upgraded if the sovereign rating is upgraded.

Moody's would raise the BCA if there is a material improvement in the bank's standalone creditworthiness, supported by a stable and predictable operating environment.

Specifically, the following factors could result in an upward revision of KTB's BCA: (1) an improvement in its gross NPL ratio, as represented by a fall in aggregate NPLs and a lower new NPL formation rate; both factors of which are supported by higher levels of provisioning; (2) a lowering in credit risk concentration in regard to single borrowers and industry sectors; and (3) an improvement in its capital generation capacity to allow for the maintenance of an adequate capital buffer against credit losses, with its Tier 1 ratio sustained at current levels.

SCB

SCB's debt and deposit ratings could be upgraded if Thailand's sovereign rating is upgraded.

In addition, a material improvement in the bank's standalone creditworthiness, supported by a stable and predictable operating environment, could prompt Moody's to revise SCB's BCA.

Quantitatively, the triggers for a revision in SCB's BCA are: (1) a significant reduction in its NPLs, leading to its NPL ratio falling below current levels; and (2) a continued strengthening of its risk management controls and underwriting practices.

UOBT

UOBT's foreign currency deposit ratings could be upgraded if Thailand's sovereign rating is upgraded, and if the bank's adjusted BCA is also raised.

UOBT's BCA and adjusted BCA could be upgraded if the bank continues to demonstrate improving credit metrics, including: (1) stable asset quality, supported by an improvement in its loss-absorbing buffers; (2) steady core earnings; and (3) a larger market share and greater diversification in sources of income.

WHAT COULD CHANGE THE RATINGS DOWN

BBL

BBL's ratings could be downgraded if Thailand's sovereign creditworthiness deteriorates; or the bank's operating environment deteriorates materially, resulting in a worsening of the bank's standalone credit worthiness and leading to a lowering of its BCA.

Specific downward pressure on BBL's BCA could develop from:

(1) A deterioration in asset quality, as a result of looser underwriting polices, which in turn are measured by aggressive annual loan growth rates in the high double digits, and/or

(2) An increase in the bank's new NPL formation rate to above-system levels over six quarters; and/or

(3) If the risk-adjusted profitability — as measured by net income as a percentage of average risk-weighted assets — falls below current levels; and/or

(4) If its loss-absorbing buffer — defined as a combination of its capitalization, loan loss provisions and net earnings levels — falls significantly; and/or its credit risk concentration increases materially.

KBANK

KBank's ratings could be downgraded if Thailand's sovereign creditworthiness deteriorates; or the bank's operating environment deteriorates materially, resulting in a worsening of the banks' standalone creditworthiness and leading to a lowering of its BCA.

Specifically, downward pressure on KBank's BCA could develop from: (1) a significant weakening in the operating environment, accompanied by a loosening of underwriting practices that pose asset quality risks; and/or (2) a material erosion in net interest margins, such that risk-adjusted profitability — as measured by net income as a percentage of tangible assets — falls below 1.2% over several quarters; and/or (3) a decline in capital adequacy such that its Tier 1 ratio falls below double-digit levels.

KTB

KTB's ratings could be downgraded if the sovereign's creditworthiness deteriorates; or the bank's operating environment deteriorates materially, resulting in a worsening of the bank's standalone credit worthiness, which in turn leads to a multi-notch lowering of its BCA.

Specifically, the triggers for a downgrade are: (1) a significant weakening in the operating environment or a loosening of underwriting practices that would pose asset quality risks, and / or a reversal in the improving trend of its new NPL formation rate; (2) lower risk-adjusted profitability, as measured by declining net income as a percentage of average risk-weighted assets; (3) a decline in its Tier 1 capital ratio below its current levels; and/or (4) any sign of a weaker, more distant relationship with the government.

SCB

SCB's ratings could be downgraded if Thailand's sovereign creditworthiness deteriorates; or the bank's operating environment deteriorates materially, resulting in a worsening of the banks' standalone credit worthiness and leading to a lowering of its BCA.

Specific triggers for a downgrade are: (1) intense price competition, causing net income as a percentage of average risk-weighted assets to fall; (2) a deterioration in the Thai operating environment and increase in exposure to riskier segments, resulting in its gross NPL ratio exceeding current levels; and (3) Tier 1 ratio falling below double-digit levels.

UOBT

UOBT's ratings could be downgraded if the bank's operating environment deteriorates materially, resulting in a worsening of its standalone credit worthiness and leading to a lowering of its BCA and adjusted BCA.

Specific triggers for a downgrade are: (1) a deterioration in the bank's asset quality and/or loss-absorbing buffers, such that it core Tier 1 ratio falls substantially, or if its NPLs — as a percentage of shareholders equity and loan-loss reserves — increase significantly; (2) intensifying competition and mergers among competitors, such that its market position becomes marginalized; and (3) any indication of a change in the bank's importance to its parent, which would alter Moody's assessment of the probability of support in times of stress.

Taking into account today's announcement, the affected ratings are as follows:

Bangkok Bank Public Company Limited:

-Long-term foreign currency bank deposit rating affirmed at Baa1, with a stable outlook

-Short-term foreign currency bank deposit rating affirmed at P-2

-Long-term foreign currency senior unsecured MTN program downgraded to (P)Baa1 from (P)A3

- Short-term foreign currency senior unsecured MTN program rating affirmed at (P)P-2

-BCA and Adjusted BCA affirmed at baa2

- Assignment of CR Assessment of Baa1(cr)/P-2(cr)

Bangkok Bank Public Company Limited, Hong Kong Branch

-Foreign currency senior unsecured debt downgraded to Baa1 from A3, with a stable outlook

-Foreign currency senior unsecured MTN program downgraded to (P)Baa1 from (P)A3

- Short-term foreign currency senior unsecured MTN program rating affirmed at (P)P-2

-Foreign currency subordinated debt affirmed at Baa3

- Assignment of CR Assessment of Baa1(cr)/P-2(cr)

Bank of Ayudhya

- Long-term foreign currency bank deposit rating remains unchanged at Baa1, with a stable outlook

- Short-term foreign currency bank deposit rating remains unchanged at P-2

- BCA and adjusted BCA, incorporating affiliate support remains unchanged at ba1 and baa2 respectively

- Assignment of CR Assessment of Baa1(cr)/P-2(cr)

CIMB Thai Bank Public Company Limited

- Long-term local currency bank issuer rating remains unchanged at Baa2, with a stable outlook

- Short-term local currency bank issuer rating remains unchanged at P-2

- Long-term foreign currency bank issuer rating remains unchanged at Baa2, with a stable outlook

- Short-term foreign currency bank issuer rating remains unchanged at P-2

- Long-term local currency bank deposit rating remains unchanged at Baa2, with a stable outlook

- Short-term local currency bank deposit rating remains unchanged at P-2

- Long-term foreign currency bank deposit rating remains unchanged at Baa2, with a stable outlook

- Short-term foreign currency bank deposit rating remains unchanged at P-2

- BCA and adjusted BCA, incorporating affiliate support remains unchanged at ba2 and baa2 respectively

- Assignment of CR Assessment of Baa1(cr)/P-2(cr)

Government Housing Bank of Thailand

- Long-term foreign currency bank deposit rating remains unchanged at Baa1, with a stable outlook

- Short-term foreign currency bank deposit rating remains unchanged at P-2

- BCA and adjusted BCA remained unchanged at ba3

- Assignment of CR Assessment of Baa1(cr)/P-2(cr)

KASIKORNBANK Public Company Limited

-Long-term local currency bank deposit rating downgraded to Baa1 from A3, with a stable outlook

-Short-term local currency bank deposit rating affirmed at P-2

-Long-term foreign currency bank deposit rating affirmed at Baa1, with a stable outlook

-Short-term foreign currency bank deposit rating affirmed at P-2

-Foreign currency senior unsecured MTN program downgraded to (P)Baa1 from (P)A3

- Short-term foreign currency senior unsecured MTN program rating affirmed at (P)P-2

-BCA and Adjusted BCA affirmed at baa2

- Assignment of CR Assessment of Baa1(cr)/P-2(cr)

KASIKORNBANK Public Co. Ltd (Hong Kong)

-Foreign currency senior unsecured debt downgraded to Baa1 from A3, with a stable outlook

-Foreign currency senior unsecured MTN program downgraded to (P)Baa1 from (P)A3

- Short-term foreign currency senior unsecured MTN program rating affirmed at (P)P-2

- Assignment of CR Assessment of Baa1(cr)/P-2(cr)

KASIKORNBANK Public Co. Ltd. (CI)

-Foreign currency senior unsecured MTN program downgraded to (P)Baa1 from (P)A3

- Short-term foreign currency senior unsecured MTN program rating affirmed at (P)P-2

-Foreign currency senior unsecured debt downgraded to Baa1 from A3, with a stable outlook

-Foreign currency subordinated debt affirmed at Baa3

Krung Thai Bank Public Company Limited

-Long-term local currency bank deposit rating affirmed at Baa1, with a stable outlook

-Short-term local currency bank deposit rating affirmed at P-2

-Long-term foreign currency bank deposit rating affirmed at Baa1, with a stable outlook

-Short-term foreign currency bank deposit rating affirmed at P-2

-Foreign currency senior unsecured MTN program affirmed at (P)Baa1/(P)P-2

-BCA and Adjusted BCA affirmed at ba1

- Assignment of CR Assessment of Baa1(cr)/P-2(cr)

Krung Thai Bank Public Co Ltd, Cayman Branch

-Foreign currency senior unsecured MTN program affirmed at (P)Baa1/(P)P-2

-Foreign currency senior unsecured debt affirmed at Baa1, with a stable outlook

Krung Thai Bank Public Co Ltd, Singapore Branch

-Foreign currency preferred stock non-cumulative rating affirmed at B1 (hyb)

- Assignment of CR Assessment of Baa1(cr)/P-2(cr)

SME Development Bank of Thailand

- Long-term local currency bank issuer rating remains unchanged at Baa2, with a stable outlook

- Short-term local currency bank issuer rating remains unchanged at P-2

- Long-term foreign currency bank issuer rating remains unchanged at Baa2, with a stable outlook

- Short-term foreign currency bank issuer rating remains unchanged at P-2

- Long-term local currency bank deposit rating remains unchanged at Baa2, with a stable outlook

- Short-term local currency bank deposit rating remains unchanged at P-2

- Long-term foreign currency bank deposit rating remains unchanged at Baa2, with a stable outlook

- Short-term foreign currency bank deposit rating remains unchanged at P-2

- BCA and Adjusted BCA remains unchanged at caa1

- Assignment of CR Assessment of Baa2(cr)/P-2(cr)

Siam Commercial Bank Public Company Limited

-Long-term local currency bank deposit rating downgraded to Baa1 from A3, with a stable outlook

-Short-term local currency bank deposit rating affirmed at P-2

-Long-term foreign currency bank deposit rating affirmed at Baa1, with a stable outlook

-Short-term foreign currency bank deposit rating affirmed at P-2

-Foreign currency senior unsecured MTN program downgraded to (P)Baa1 from (P)A3

- Short-term foreign currency senior unsecured MTN program rating affirmed at (P)P-2

-BCA and Adjusted BCA affirmed at baa2

- Assignment of CR Assessment of Baa1(cr)/P-2(cr)

Siam Commercial Bank Public Co. (Cayman)

-Foreign currency senior unsecured MTN program downgraded to (P)Baa1 from (P)A3

- Short-term foreign currency senior unsecured MTN program rating affirmed at (P)P-2

-Foreign currency senior unsecured debt downgraded to Baa1 from A3, with a stable outlook

Siam Commercial Bank Public Co. (Hong Kong)

-Foreign currency senior unsecured MTN program downgraded to (P)Baa1 from (P)A3

- Short-term foreign currency senior unsecured MTN program rating affirmed at (P)P-2

-Foreign currency senior unsecured debt downgraded to Baa1 from A3, with a stable outlook

- Assignment of CR Assessment of Baa1(cr)/P-2(cr)

TMB Bank Public Company Limited

- Long-term foreign currency bank deposit rating remains unchanged at Baa2, with a stable outlook

- Short-term foreign currency bank deposit rating remains unchanged at P-2

- Foreign currency senior unsecured MTN program remains unchanged at (P)Baa2

- BCA and Adjusted BCA remains unchanged at ba2

- Assignment of CR Assessment of Baa1(cr)/P-2(cr)

TMB Bank Public Co. Ltd (Cayman Islands)

- Foreign currency senior unsecured MTN program remains unchanged at (P)Baa2

- Foreign currency senior unsecured debt remains unchanged at Baa2

United Overseas Bank (Thai) Public Company Limited

- Foreign currency deposit ratings affirmed at Baa1/P-2 with a stable outlook

- BCA raised to ba1 from ba2 and adjusted BCA confirmed at baa1

- Assignment of CR Assessment of A3(cr)/P-2(cr)

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks published in March 2015. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

The banks are headquartered in Bangkok and reported total assets as follows:

Bangkok Bank: THB2.8 trillion at 31 December 2014

Bank of Ayudhya: THB1.2 trillion at 31 December 2014

CIMB Bank Thai Public Company Limited: THB274.1 billion at 31 December 2014

Government Housing Bank of Thailand: THB 766.3 billion at 31 December 2013

Kasikornbank: THB2.4 trillion at 31 December 2014

Krung Thai Bank: THB2.7 trillion at 31 December 2014

SME Development Bank of Thailand: THB88.3 billion at 31 December 2013

Siam Commercial Bank: THB2.7 trillion at 31 December 2014

TMB Bank Public Company Limited: THB810.2 billion at 31 December 2014

United Overseas Bank (Thai) Public Co., Ltd: THB397.7 billion at 31 December 2014

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

The below contact information is provided for information purposes only. Please see the ratings tab of the issuer page at www.moodys.com, for each of the ratings covered, Moody's disclosures on the lead analyst and the Moody's legal entity that has issued the ratings.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Alka Anbarasu
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service Singapore Pte. Ltd.
50 Raffles Place #23-06
Singapore Land Tower
Singapore 48623
Singapore
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077

Stephen Long
MD - Financial Institutions
Financial Institutions Group
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077

Releasing Office:
Moody's Investors Service Singapore Pte. Ltd.
50 Raffles Place #23-06
Singapore Land Tower
Singapore 48623
Singapore
JOURNALISTS: (852) 3758 -1350
SUBSCRIBERS: (852) 3551-3077

Moody's concludes review on four Thai banks; assigns Counterparty Risk Assessments to 10 banks
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​
Moodys.com