KEY RATING DRIVERS
CTL's ratings are driven by institutional support from its parent, US-based Citibank, N.A. (A+/Negative/a). CLT is wholly owned by Citibank, and is very highly integrated with Citibank's Bangkok branch. CLT plays an in important strategic role for the group as the company's network of sales centres expand Citibank's marketing reach for consumer products.
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
Factors that could, individually or collectively, lead to positive rating action/upgrade:
There is no upside to CLT's rating, as it is at the highest level on the national ratings scale.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
A reduction in Citibank's ability to support CLT could result in a downgrade of the company's ratings. This would be indicated by a downgrade in the parent's Viability Rating, as well as Fitch's consideration of CLT's relative strengths on the Thai national rating scale.
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.
Fitch Ratings - Bangkok - 30 Apr 2020: Fitch has affirmed Citicorp Leasing (Thailand) Limited's (CLT) National Long-Term Rating at 'AAA(tha)' with a Stable Outlook, and its National Short-Term Rating at 'F1+(tha)'.
KEY RATING DRIVERS
CTL's ratings are driven by institutional support from its parent, US-based Citibank, N.A. (A+/Negative/a). CLT is wholly owned by Citibank, and is very highly integrated with Citibank's Bangkok branch. CLT plays an in important strategic role for the group as the company's network of sales centres expand Citibank's marketing reach for consumer products.
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
Factors that could, individually or collectively, lead to positive rating action/upgrade:
There is no upside to CLT's rating, as it is at the highest level on the national ratings scale.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
A reduction in Citibank's ability to support CLT could result in a downgrade of the company's ratings. This would be indicated by a downgrade in the parent's Viability Rating, as well as Fitch's consideration of CLT's relative strengths on the Thai national rating scale.
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.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Financial Institutions issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
CKT's ratings are linked to the Viability Rating of Citibank N.A., along with Fitch's consideration of the company's relative strength on the Thai national ratings scale.
Additional information is available on www.fitchratings.com