KEY RATING DRIVERS
The senior unsecured notes are rated at the same level as KTZ's National Long-Term Rating, as they constitute the issuer's unsecured and unsubordinated obligations.
Fitch uses our institutional-support framework to rate KTZ. The company's National Long-Term Rating is three notches below that of its largest shareholder, state-owned Krung Thai Bank Public Company Limited (KTB; AA+(tha)/Stable/F1+(tha)). The rating reflects the presence of other significant shareholders in KTZ and a degree of uncertainty about how the government would respond as KTB's ultimate shareholder should KTB be unable to support its subsidiary when under financial stress.
See "Fitch Affirms Ratings of Krung Thai Bank and its Securities Subsidiary", dated 2 April 2020, at www.fitchratings.com/site/pr/10116455 for KTZ's rating drivers and sensitivities.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
The rating sensitivities for KTZ are outlined in its most recent rating action commentary referenced above. An upgrade in KTZ's National Long-Term Rating would have a similar effect on the National Long-Term Rating of the senior unsecured notes.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
The rating on the senior unsecured notes would be downgraded if KTZ's National Long-Term Rating is downgraded.
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
KTZ's National Ratings are linked to the National Ratings of KTB.
Additional information is available on www.fitchratings.com
Source: Fitch Ratings