At the same time, Fitch has assigned SCBX's upcoming senior unsecured notes of up to THB40 billion a National Long-Term Rating of 'AA+(tha)'. The debenture will be issued in multiple tranches and the proceeds will be used for debt repayments, lending to the group's subsidiaries, investments and general corporate purposes.
KEY RATING DRIVERS
SCBX's senior unsecured debt is rated at the same level as its National Long-Term Rating and National Short-Term Rating, as the notes are direct, unsecured and senior obligations of the issuer. SCBX's National Rating is underpinned by the standalone credit profile of the group, as reflected by the VR of the core operating entity, The Siam Commercial Bank Public Company Limited (SCB; BBB/Stable/bbb). SCBX's National Ratings are also based on its credit profile relative to other entities rated on the Thai national rating scale.
For more details on SCBX's rating drivers and sensitivities, see the rating action commentary "Fitch Assigns SCBX 'AA+(tha)' National Rating; Outlook Stable", dated 9 November 2022, and "Fitch Assigns SCBX First-Time 'BBB' IDR; Outlook Stable", dated 25 August 2022.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
A downgrade in SCBX's National Long-Term Rating would lead to a similar action on the rating of the MTN programme and the senior notes. However, the National Short-Term Rating on the MTN programme is unlikely to be downgraded unless SCBX's National Long-Term Rating is downgraded to 'A+(tha)' or below.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
An upgrade of SCBX's National Long-Term Rating would also lead to an upgrade of the MTN programme and the senior notes. There is no rating upside on the National Short-Term Rating of the MTN programme as it is already at the highest level.
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
SCBX's ratings are linked to the credit profile of SCB.
Additional information is available on www.fitchratings.com
Source: Fitch Ratings