The programme has a maximum size of THB50 billion, with allowance for revolving issuance. Proceeds will be used for debt repayment and/or working capital.
The ratings of the MTN programme apply only to senior unsecured issues under the programme. There is no assurance that notes issued under the programme will be assigned a rating.
KEY RATING DRIVERS
ICBCTL's senior unsecured MTN programme is rated at the same level as its National Long-Term Rating of 'AAA(tha)' and National Short-Term Rating of 'F1+(tha)', as it represents the company's unsecured and unsubordinated obligations.
Fitch equalises ICBCTL's National Long-Term Rating with that of the parent bank, Industrial and Commercial Bank of China (Thai) Public Company Limited (ICBCT, AAA(tha)/Stable/F1+(tha)). This reflects Fitch's belief that ICBCTL is a core subsidiary of ICBCT and would receive extraordinary support from the parent, if needed.
For more details on key rating drivers and sensitivities for ICBCTL, please see our latest commentary, "Fitch Affirms ICBCT and ICBCTL at 'AAA(tha)'; Outlook Stable", dated 16 September 2021.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
The MTN programme ratings could be downgraded following similar rating action in ICBCTL's National Long- and Short-Term Ratings. This may occur if Fitch believed there was a reduced propensity of support from ICBCT to ICBCTL. For example, this could arise from a material dilution in ICBCT's ownership to below 75% and a withdrawal of its financial commitments, or other strategic actions that indicate a significant reduction in propensity to support ICBCTL. However, Fitch believes this is unlikely to occur in the near term.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
An upgrade is not possible because the programme ratings are already at the top-end of our Thai National Rating scale.
DATE OF RELEVANT COMMITTEE
15 September 2021
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
ICBCTL's ratings are linked to ICBCT's ratings.
Additional information is available on www.fitchratings.com
Source: Fitch Ratings