The notes will be issued under the 2022 medium-term note (MTN) programme and the proceeds will be used for debt repayment and/or working capital.
KEY RATING DRIVERS
ICBCTL's senior unsecured notes are rated at the same level as its National Long-Term Rating of 'AAA(tha)', as they represent ICBCTL'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)), to reflect Fitch's belief that the company is a core subsidiary of ICBCT and would receive extraordinary support from ICBCT, if needed.
For further details on ICBCTL's key rating drivers and sensitivities, please see our latest commentary, "Fitch Affirms ICBCTL at 'AAA(tha)'; Outlook Stable", dated 8 September 2022.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
The National Long-Term Rating on the senior unsecured notes could be downgraded following similar rating action on ICBCTL's National Long-Term Rating. This may occur if Fitch no longer believed that ICBCTL is a core subsidiary of ICBCT. 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 'AAA(tha)' rating is already at the top-end of our Thai National Rating scale.
DATE OF RELEVANT COMMITTEE
08 September 2022
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