Fitch Rates Siam Commercial Bank's Sub Debentures 'AA-(tha)'

Fitch Ratings (Thailand) has assigned a National Long-Term rating of 'AA-(tha)' to Siam Commercial Bank Public Company Limited's (SCB; National Long-Term Rating: 'AA(tha)'/Outlook Stable) unsecured subordinated debentures of up to THB20bn, with a maturity of 10 years. The proceeds will be used for the bank's general corporate purposes. The rating of subordinated debentures is consistent with Fitch's approach of rating such performing instruments at one notch below the issuer's National Long-Term Rating. SCB's ratings reflect its solid profitability, as well as its adequate liquidity and strong capitalisation. The ratings also reflect SCB's strong domestic franchises in retail and corporate banking segments. The bank's key performance metrics compare favourably with global peers. Fitch believes SCB's overall financial position is sufficiently robust to absorb severe credit stress.