Fitch Rates THB Notes Issued by SMBC#s Bangkok Branch #AAA(tha)#

Stocks and Financial Services Press Releases Friday August 11, 2017 16:36
Bangkok--11 Aug--Fitch Ratings

Fitch Ratings (Thailand) has today assigned a National Long-Term Rating of 'AAA(tha)' to Sumitomo Mitsui Banking Corporation's (SMBC; A/Stable/F1) upcoming three-year Thai baht-denominated senior unsecured notes. The notes will be issued by SMBC's Bangkok Branch. The proceeds will be used for general operating purposes.

SMBC's Bangkok Branch is one of the largest foreign-bank branches in Thailand, with total assets of THB345 billion at end-March 2017.
KEY RATING DRIVERS

The National Rating on the notes is based on SMBC's Long-Term Foreign Currency Issuer Default Rating (IDR) of 'A', which is above Thailand's Long-Term Local-Currency IDR of 'BBB+'. Therefore, it corresponds to 'AAA(tha)', the highest rating on Thailand's National Rating scale.

SMBC's IDR is based on the banking group's Viability Rating (VR) of 'A', which reflects its solid capital position, manageable market risk, healthy liquidity and stable profitability. SMBC is a core subsidiary of Sumitomo Mitsui Financial Group, Inc (SMFG), which is one of the largest financial groups in Japan by total assets. The Outlook on SMBC's IDR was revised to Stable from Negative following the affirmation of Japan's sovereign rating at 'A' and the revision of the Outlook from Negative on 27 April 2017 (Please see Fitch Revises Outlook on Japan to Stable; Affirms at 'A'. ).

RATING SENSITIVITIES
The rating on SMBC's senior unsecured note at 'AAA(tha)' is already the highest level on the national scale, limiting the possibility of a rating upgrade.

A downgrade could be triggered if SMBC's Long-Term Foreign-Currency IDR were to be lowered to below Thailand's Long-Term Local-Currency IDR, either by a downgrade of SMBC itself or an upgrade of Thailand above SMBC. However, both scenarios are unlikely in the near term - given the current two-notch gap between SMBC and Thailand.


Latest Press Release

SPRIMEs IPO First Day Trade Expects approximate yields of 7% for the first year, Confident over Suntowers Office Building and its prime location to connect businesses and growth

SPRIME's units are listed on the Stock Exchange of Thailand on the first day trade, expecting approximate yields of 7% for the first year (January 1 – December 31, 2019) to the unitholders. With confidence over the potential of the investment...

SET welcomes SPRIME REIT on Jan 23

The Stock Exchange of Thailand (SET) will list S Prime Growth Leasehold Real Estate Investment Trust worth THB 5.72 billion (approx. USD 173.26 million) on January 23, 2019, under the ticker symbol "SPRIME ". SET Senior Executive Vice President Manpong...

Empowering ASEAN 4.0 the ways forward to pursue and become ready for the transformation to the digital era

The ASEAN Business Advisory Council (ASEAN BAC) was inaugurated in April 2003 at the ASEAN Secretariat in Jakarta, Indonesia. Its establishment was mandated by the ASEAN Leaders at their 7th ASEAN Summit, November 2001 in Bandar Seri Begawan, Brunei...

Fitch Rates KTB Securities# THB Subordinated Debentures #BB-(tha)#

Fitch Ratings (Thailand) has today assigned a National Long-Term Rating of 'BB-(tha)' to KTB Securities (Thailand) Public Company Limited's (KTBST; BB(tha)/Stable) upcoming issue of up to THB400 million in subordinated debentures. The debentures will...

TMB reported 2018 net profit of THB11,601 mn, 34% increase from last year. Coverage ratio was raised to 152% in preparation for IFRS 9 implementation, reflecting the Banks prudent management.

TMB reported 2018 net profit of THB11,601 mn, 34% increase from last year. Coverage ratio was raised to 152% in preparation for IFRS 9 implementation, reflecting the Bank's prudent management. Moving toward 2019, the Bank will continue to further acquire...

Related Topics