Bangkok--29 Mar--Moody's Asia
Moody's Investors Service has placed Siam Commercial Bank Public Company Limited's (SCB) bank financial strength rating (BFSR) of "D+" on review for possible upgrade. SCB's debt and deposit ratings are unaffected and their outlook remains stable. The bank's Baa1 foreign currency deposit rating is at Thailand's foreign currency country ceiling. Furthermore, its deposit and debt ratings already incorporate government support, lifting them above the rating level typically associated with SCB's intrinsic financial strength.
"The review for possible upgrade has been prompted by Moody's positive assessment of the bank's strategy to expand into consumer and middle-market lending," says lead analyst Leo Wah, adding, "Successful execution has helped SCB achieve critical mass which leads to a recovery of profitability."
"Moody's review will focus primarily on SCB's asset quality in view of its rapid balance sheet expansion and its ability to strengthen its franchise without sacrificing its profitability and incurring substantial costs," says Wah, adding, "The possible rating upgrade will also be based upon SCB's strategy and ability to maintain a strong capital position as a protection against the potentially high economic volatility in Thailand."
Headquartered in Bangkok, SCB is Thailand's fourth largest bank, with total assets of Bt 814 billion (US$20 billion) as of December 31, 2005.The following rating was placed on review for possible upgrade:
Siam Commercial Bank Public Company Limited -- Bank financial strength
rating of D+.
The other ratings of the bank are:
Siam Commercial Bank Public Company Limited -- Foreign currency deposit
ratings of Baa1 and Prime-2. The rating outlook is stable.
Hong Kong
Leo Wah, CFA
Asst Vice President - Analyst
Financial Institutions Group
Moody's Asia Pacific Ltd.
JOURNALISTS: (852) 2916-1150
SUBSCRIBERS: (852) 2916-1121
Singapore
Beatrice Woo
Vice President - Senior Analyst
Financial Institutions Group
Moody's Singapore Pte Ltd.
JOURNALISTS: (852) 2916-1150
SUBSCRIBERS: (65) 6398-8308