KEY RATING DRIVERS
The ratings on the senior unsecured notes are based on the Long-Term Foreign-Currency Issuer Default Ratings (IDRs) of MHBK and Sumitomo Mitsui Banking Corporation (SMBC, A/Stable/F1). The IDRs are above Thailand's Long-Term Local-Currency IDR of 'BBB+' and thereby correspond to 'AAA(tha)', the highest level on Thailand's National-Rating scale.
For additional information on MHBK and SMBC, see our latest rating action commentary, Fitch Affirms Ratings on Japanese Major Banks, dated 18 December 2017.
RATING SENSITIVITIES
There is no rating upside as the senior unsecured notes of MHBK and SMBC Bangkok Branch are already at the highest level on the Thailand National Rating scale.
A downgrade could be triggered if the Long-Term Foreign-Currency IDRs of either MHBK or SMBC was at or below Thailand's Long-Term Local-Currency IDR, whether by a downgrade of the banks' ratings or an upgrade of Thailand's rating.
The rating actions are as follows:
MHBK:
THB3.0 billion 2.33% senior unsecured notes due September 2018 National Long-Term Rating affirmed at 'AAA(tha)'
SMBC Bangkok Branch:
THB3.5 billion 2.09% senior unsecured notes due November 2019 National Long-Term Rating affirmed at 'AAA(tha)'
THB4.0 billion 2.00% senior unsecured notes due August 2020 National Long-Term Rating affirmed at 'AAA(tha)'