TRIS Rating Views that Credit Ratings of TBANK Are Not Affected by the Potential Exit of BNS

Stocks and Financial Services Press Releases Wednesday December 23, 2015 09:31
Bangkok--23 Dec--TRIS Rating
TRIS Rating has viewed that the credit ratings of Thanachart Bank PLC (TBANK) will not be affected by the potential exit by one of the bank's major shareholder, Bank of Nova Scotia (BNS).

Thanachart Capital PLC, a major shareholder of TBANK through a 50.96% ownership stake, informed the Stock Exchange of Thailand (SET) that BNS, which holds a 48.99% stake in TBANK, has changed its strategy in the Asia-Pacific region. BNS plans to divest its investment in TBANK by offering its stake to other large, financially strong and reputable international financial institutions. The new owner must be acceptable to TCAP, and the divestiture will be subject to approval by the Bank of Thailand (BOT).

BNS has been a strategic partner of TCAP and a major shareholder of TBANK since 2007. By leveraging its experience and knowledge, BNS improved TBANK's work procedures and risk management systems. However, the divestiture by BNS will not affect TBANK's credit profile because the contributions BNS made to TBANK have been internalized into TBANK's operations. As a result, TBANK will maintain continuity in all of its lines of business after BNS divests its shareholding. TRIS Rating will continue to monitor the changes in TBANK's ownership structure, and the effect on TBANK's credit profile, over the medium to long term.

TBANK, a core subsidiary of TCAP, is the sixth-largest Thai commercial bank as measured by asset size. TBANK had a 6.5% market share in loans and a 6.0% share in deposits as of September 2015. TBANK is the largest auto loan provider in Thailand, with approximately 22% market share in auto loans as of December 2014.

TRIS Rating currently assigns a "AA-" company rating to TBANK, "A+" ratings for TBANK's subordinated debentures, and "A" ratings for TBANK's hybrid Tier 2 capital security, with a "stable" outlook.

Latest Press Release

Photo Release: WHA Group Meets Investors, Q2/2018 Opportunity Day

WHA Group, led by Ms. Jareeporn Jarukornsakul (right), Chairman and Group CEO, together with Mr. Arttavit Chalermsaphayakorn (left), Chief Financial Officer of WHA Corporation Pcl., had recently presented the Company's Q2/2018 information at "Opportunity...

USD120,000 at stake in CIMBs 3D Conquest to unearth ASEANs top #digital talents Competition sets path for nurturing crucial skills in data science, FinTech and coding among tertiary students

CIMB Group Holdings Berhad ("the Group" or "CIMB") has launched the CIMB 3D Conquest, a competition that aims to identify and attract ASEAN's top creative, young digital talent with an agile and entrepreneurial mindset. Open to all tertiary students, the...

Allianz to become Worldwide Olympic Insurance Partner

The International Olympic Committee (IOC) and Allianz today announced that the insurer will join the "Worldwide Olympic Partner" (TOP) Programme in 2021. Through this sponsorship agreement, Allianz will work with the IOC to provide innovative and...

BYFX Global Co., Limited Announces Business Launch

BYFX Global Co., Limited (BYFX Global) today announced the launch of its retail and institutional business -- offering clients around the globe top-tier liquidity and online OTC trading for Spot FX and Spot Bullion[1]. Striving towards financial...

2018 Robot World to Suggest Direction for the Fourth Industrial Revolution

Showcasing the latest robot technologies from around the world, the 2018 Robot World will be held at KINTEX, Korea from October 10-13, 2018. The Robot World (eng.robotworld.or.kr/wp), celebrating its 13th anniversary this year, consists of four main...

Related Topics