Fitch Maintains Rating Watch Negative on Thailand#s CGS-CIMB

Stocks and Financial Services Press Releases Friday July 13, 2018 10:40
Bangkok--13 Jul--Fitch Ratings

Fitch Ratings (Thailand) has maintained the Rating Watch Negative on CGS-CIMB Securities (Thailand) Co., Ltd.'s (CGS-CIMB TH) National Long-Term Rating of 'AA-(tha)' and National Short-Term Rating at 'F1+(tha)'.

Fitch placed CGS-CIMB TH's ratings on Rating Watch Negative on 14 February 2018 following CIMB group's announcement that it agreed to sell a 50% stake in CGS-CIMB TH's parent - CGS-CIMB Securities International Pte. Ltd. (CGS-CSI) - to China Galaxy International Financial Holdings Limited (CGI). The ratings remain on Rating Watch Negative pending Fitch's review of the institutional support available to CGS-CIMB TH after the ownership change at the parent level.

KEY RATING DRIVERS

CGS-CIMB TH's board and branding has changed to reflect the change in control at its parent, CGS-CSI, since Fitch placed the company on Rating Watch Negative in February 2018. Fitch also believes there are ongoing changes in the company's strategic direction and risk management framework.

The Rating Watch Negative reflects the possibility that external support to CGS-CIMB TH may not be as strong as the support previously received from CIMB group, which has clear plans to further reduce its stake in the securities businesses. Fitch believes the ability and propensity of support from the new shareholder, CGI, remains unclear. See Fitch Downgrades CIMBS to 'AA-(tha)', on RWN; Affirms 3 Thai Subsidiaries of Foreign Banks, dated 14 February 2018, for details.

Fitch continues to assess the credit profile of CGS-CSI, which incorporates an assessment of the linkage between CGS-CSI and its shareholders, and that of CGI.
RATING SENSITIVITIES

Fitch will resolve the Rating Watch Negative on CGS-CIMB TH's ratings once Fitch completes its assessment of CGS-CSI's profile and propensity to support CGS-CIMB TH. Fitch may downgrade the ratings if it believes that joint support from CIMB group and China Galaxy group to CGS-CSI, and hence CGS-CIMB TH, is lower than the rating currently indicates.


Latest Press Release

Fitch Rates ICBCTL#s Senior Notes #AAA(tha)#

Fitch Ratings (Thailand) Limited has assigned ICBC (Thai) Leasing Company Limited's (ICBCTL, AAA(tha)/Stable/F1+(tha)) upcoming long-term senior unsecured notes a National Long-Term Rating of 'AAA(tha)'. The notes will be issued under ICBCTL's THB30...

UnionPay offers foodies exclusive fine dining experiences at a special price At Bangkok Restaurant Week 2018

The highly anticipated Bangkok Restaurant Week 2018 from Wongnai is here. The annual festival is bringing foodies fine dining experiences and special deals from over 50 most well-known restaurants across Bangkok. UnionPay, the best payment companion for...

TCEB unveils its 2019 strategy under a brand-new campaign Thailand: REDEFINE Your Business Events

TCEB today announced a launch of its new brand marketing communication campaign "Thailand: Redefine Your Business Events". The new campaign has prompted the bureau to redefine its role as an industry's partner for success. Tapping into the growing...

L1 Treasury จับมือ Airborne Capital ทุ่มทุน 250 ล้านดอลลาร์สหรัฐ เปิดตัว AltitudeOne Aviation

- AltitudeOne Aviation Ltd ("AltitudeOne Aviation") เป็นธุรกิจร่วมทุนที่เปิดตัวโดย LetterOne Treasury Services SA ("L1 Treasury") และ Airborne Capital Limited ("Airborne Capital") - AltitudeOne Aviation จะลงทุนในพอร์ตหลากหลายประเภท...

L1 Treasury and Airborne Capital Commit US$250m to Launch of AltitudeOne Aviation

- AltitudeOne Aviation Ltd ("AltitudeOne Aviation") is a venture launched by LetterOne Treasury Services SA ("L1 Treasury") and Airborne Capital Limited ("Airborne Capital") - AltitudeOne Aviation will invest in a diversified portfolio of in-production...

Related Topics