Bangkok--Mar 18--Moody's Asia Pacific
Moody's Investors Service has placed Siam Commercial Bank Public Company Limited's (SCB) D bank financial strength rating (BFSR) on review for possible upgrade. SCB's debt and deposit ratings are unaffected and their outlook remains stable. The bank's Baa1 foreign currency deposit rating is at Thailand's foreign currency country ceiling. Furthermore, its deposit and debt ratings already incorporate government support, lifting them above the rating level typically
associated with SCB's intrinsic financial strength.
Moody's says the review was triggered by the bank's stronger-than-expected full-year results. The strong performance of its consumer franchise in
2004 demonstrates SCB's success in maintaining its franchise in an increasingly competitive market.
The review will focus on SCB's asset quality and the sustainability of
its strong earnings performance for 2004. In making its decision, the rating agency will consider the extent to which additional provisions may still be required to cover potential losses on SCB's non-performing loans and restructured loans. The risks associated with its consumer credit expansion, particularly into credit cards, will also be examined.
Additionally, Moody's says capital targets and dividend plans would
represent other factors in its conclusion.
Headquartered in Bangkok, SCB is Thailand's fourth largest bank, with
total assets of baht 764.5 billion (US$ 19.6 billion) on December 31, 2004.
The ratings affected are:
Siam Commercial Bank Public Company Limited -- Bank financial strength
rating of D, on review for possible upgrade.
The ratings not affected are:
Siam Commercial Bank Public Company Limited -- Foreign currency deposit
ratings of Baa1 and Prime-2. The rating outlook is stable.
Siam Commercial Bank Public Company Limited (Singapore) -- Foreign
currency subordinated debt of Baa2. The rating outlook is stable.
Hong Kong
Wei S. Yen
Managing Director
Financial Institutions Group
Moody's Asia Pacific Ltd.
Telephone: 852-2509-0200
Facsimile: 852-2509-0165 End.