KEY RATING DRIVERS
CLT's ratings reflect Fitch's assessment that it is very likely to receive support from its parent, US-based Citibank, N.A. (A+/Stable/a). CLT is wholly owned by Citibank, and plays an important strategic role for Citibank's operations in Thailand. The company's branch network allows Citibank to significantly expand its marketing reach for consumer products, and CLT is very highly integrated with Citibank's Bangkok branch in terms of operations and management. There is also a consistent track record of ordinary support from Citibank to CLT, including in terms of risk management expertise, IT systems, and funding.
CLT has a highly specialised business that offers instalment personal loans to relatively higher-income salaried workers. This complements the other retail offerings from Citibank's Bangkok branch, such as credit cards and wealth management. CLT has been consistently profitable, and the company's earnings over the past several years have been improving.
CLT's National Long-Term Rating reflects Fitch's belief that after considering the support prospects, the company's credit profile is in line with the best credits in the country.
RATING SENSITIVITIES There is no upside to CLT's rating, as it is at the highest level on the national ratings scale.
Any deterioration in Citibank's standalone credit profile, as reflected in its Viability Rating, may indicate a change in the parent's ability to support CLT and hence lead to a downgrade in CLT's National Long-Term Rating.
A decline in the parent's propensity to support CLT may also lead to a downgrade. For example, this may be indicated by a large reduction in shareholding, or a reversal of past linkages and integration between CLT and Citibank. However, Fitch does not expect such changes to occur in the near term.