Bangkok--May 13--Moody's Investors Service
Moody's Investors Service has confirmed Bank of Asia's (BOA) Baa1/P-2 long-term/short-term deposit ratings and D bank financial strength rating (BFSR). This action follows United Overseas Bank's (UOB) May 12, 2004 announcement that it has signed a conditional Sale and Purchase Agreement with ABN AMRO N.V. to acquire the latter's 80.77% stake in BOA. This concludes Moody's review for possible downgrade initiated on February 20, 2004. The outlook for all BOA ratings is stable.
BOA's deposit ratings, currently rated at Thailand's foreign currency country ceilings, incorporate support from its incumbent parent, ABN AMRO. In Moody's opinion, UOB is a fundamentally strong bank with B+ BFSR and Aa2 long-term deposit ratings, one notch above ABN AMRO's B/Aa3 ratings. We also believe UOB will be committed to BOA, with Thailand being an important part of UOB's regional strategy. Likelihood of any impairment in the BOA's intrinsic fundamentals of a relatively clean balance sheet and good risk management framework is also remote.
The Sale and Purchase Agreement, while largely final, is contingent on certain pre-conditions including regulatory approvals.
Domiciled in Thailand, BOA is the ninth largest commercial bank in the country with reported total assets of baht 170.9 billion (US$4.4 billion) as at December 31, 2003.
The following ratings were confirmed:
- Baa1/P-2 long-term/short-term deposit ratings. The bank does not have outstanding foreign currency long term debts.
- D bank financial strength rating.
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Facsimile: 65-6398-8301 End.
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