The notes will be issued under the 2023 medium-term note (MTN) programme and the proceeds will be used for debt repayment and working capital.
At the same time, Fitch has withdrawn KTX's 'AA-(tha)' senior unsecured note rating of 13 January 2023, as the issuance has been cancelled and replaced with the new issuance under the 2023 MTN programme.
KEY RATING DRIVERS
The senior unsecured notes are rated at the same level as KTX's National Long-Term Rating, 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, leading to potentially lower management integration and control by KTB compared with other bank-owned securities firms rated by Fitch.
For further details of KTX's rating drivers and sensitivities, please see "Fitch Affirms Krungthai Zmico Securities at 'AA-(tha)'; Outlook Stable", published on 15 March 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 KTX's National Long-Term Rating.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
An upgrade of KTX's National Long-Term Rating would have a similar effect on the National Long-Term Rating of the senior unsecured notes.
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.
Source: Fitch Ratings