Fitch Ratings (Thailand) has assigned a National Short-Term Rating of 'F1+(tha)' to Siam Commercial Bank Public Company Limited's (SCB; BBB+/Stable/AA(tha)) unsubordinated unsecured short-term debenture programme of up to THB50bn.
This programme will replace SCB's existing THB50bn short-term debenture programme, which expires on 13 July 2016. Debentures issued under the programme will have a maturity of no more than 270 days and can be issued in separate tranches. Proceeds will be used for the bank's general corporate purposes.
KEY RATING DRIVERS
The programme is rated at the same level as SCB's National Short-Term Rating of 'F1+(tha)', as the issuance under the programme will constitute the bank's direct unsubordinated and unsecured obligations.
SCB's ratings are supported by its sound universal banking franchise and leading market share in a range of financial products. The economic environment remains muted and could constrain SCB's performance and asset quality, but is not expected to significantly impair the bank's capital and reserve coverage buffers.
RATING SENSITIVITIES
Any change in SCB's National Short-Term Ratings will affect the programme's rating. SCB's ratings are already at the top end of the scale, hence there is no upside. There could be downside if there was an extremely rapid and severe deterioration in asset quality and capital. However, Fitch does not expect such changes in the short-term.
The other ratings of SCB are unaffected and are as follows:
Long-Term Foreign-Currency Issuer Default Rating: 'BBB+'; Outlook Stable
Short-Term Foreign-Currency Issuer Default Rating: 'F2'
Viability Rating: 'bbb+'
Support Rating: '2'
Support Rating Floor: 'BBB-'
National Long-Term rating: 'AA(tha)'; Outlook Stable
National Short-Term rating: 'F1+(tha)'
Senior unsecured USD3.5bn medium-term note programme: 'BBB+'
Long-term foreign-currency senior unsecured debt: 'BBB+'
National rating on short-term senior unsecured debt programme: 'F1+(tha)'
National rating on long-term subordinated debt: 'AA-(tha)'