The notes will be issued under the 2021 medium-term note (MTN) programme and the proceeds will be used for debt repayment and working capital.
KEY RATING DRIVERS
The senior unsecured notes are rated at the same level as KTX's National Long-Term Ratings, as they constitute the issuer's unsecured and unsubordinated obligations.
Fitch uses its shareholder support framework to rate KTX. 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; BBB+/AAA(tha)/Stable). This reflects the presence of other significant shareholders in KTX, which leads to potentially lower management integration and control by KTB compared with other bank-owned securities firms rated by Fitch.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
For further details of KTX's rating drivers and sensitivities, please see "Fitch Affirms Krungthai Zmico Securities at 'AA-(tha)'; Outlook Stable", published 15 March 2022.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
The National Long-Term Rating on the senior unsecured notes would move in tandem with KTX's National Long-Term Rating.
DATE OF RELEVANT COMMITTEE
24 March 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
KTX's ratings are linked to the local-currency credit profile of KTB, as denoted by the shareholder bank's National Long-Term Rating.
Additional information is available on www.fitchratings.com
Source: Fitch Ratings