The assignment of the final rating follows the receipt of final documents conforming to the information already received. The final rating is the same as the expected rating assigned on 9 November 2023.
KEY RATING DRIVERS
Fitch rates the notes at the same level as EXIM's Long-Term Issuer Default Rating (IDR), as they represent its unsubordinated and unsecured obligations. This is in line with our rating for the bank's existing senior US-dollar notes and consistent with Fitch's Bank Rating Criteria.
EXIM's IDR is equalised with Thailand's sovereign rating (BBB+/Stable), reflecting our view that there is a high probability that EXIM would receive extraordinary support from the Thai government, if needed. EXIM is a state policy bank established under specific legislation and is wholly owned by the Thai Ministry of Finance, which governs the bank's management and strategy.
For further details on EXIM's key rating drivers and sensitivities, see Fitch Affirms Thai EXIM at 'BBB+'; Outlook Stable.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
EXIM's senior debt ratings would be downgraded if its Long-Term IDR was downgraded. The Long-Term IDR is likely to move in tandem with Thailand's sovereign rating.
Negative rating action on EXIM's Long-Term IDR could also arise should there be any reduction in the perceived propensity of the government to support the bank. This could arise from a large decline in the state's ownership, a narrower policy role and state linkages or if the bank were to change its legal status and was no longer a specialised financial institution. However, we do not expect any changes in support propensity in the medium term.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
An upgrade of the sovereign's Long-Term IDR could lead to an upgrade of EXIM's Long-Term IDR and senior debt ratings.
DATE OF RELEVANT COMMITTEE
27 September 2023
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
EXIM's ratings are linked to the Thailand sovereign's ratings.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
Additional information is available on www.fitchratings.com
Source: Fitch Ratings