Fitch Revises Credit Outlook for 5 Thai Banks EXIM, KTB, TTB, SCBT and UOBT to Stable

thunhoon.com··THKY·Read original
2▲3 ▼0Impact / 5
Summary · why it matters

Fitch Ratings (Thailand) Limited has revised the outlook on the long-term foreign-currency international credit ratings, or Long-Term IDRs, of five Thai banks, namely EXIM, KTB, TTB, SCBT and UOBT, to "Stable" from "Negative," while keeping the credit outlook for BBL at "Stable." The ratings that were affirmed are EXIM and KTB at BBB+, TTB and BBL at BBB, and SCBT and UOBT at A-. Fitch also affirmed the government support ratings for EXIM, KTB, TTB and BBL, and affirmed the shareholder support ratings for SCBT and UOBT. For BBL, Fitch kept its Viability Rating, or VR, unchanged and revised the outlook on its funding and liquidity factor score to "Stable" from "Negative." This outlook revision follows the upgrade of Thailand's sovereign credit outlook to "Stable," which reflects the government's capacity to provide extraordinary support to the banking group, which remains strong, amid domestic economic conditions recovering better than previously assessed. On subsidiaries, Fitch revised the credit outlook for KTB's Cayman Islands branch to "Stable" from "Negative," keeping its rating at BBB+ in line with the parent bank. Factors that would positively affect the ratings in the future include an upgrade of Thailand's sovereign rating, which would lead to an upgrade of government support and the long-term credit ratings of the banking group, though the chance of a near-term upgrade may still be limited. Risks that could lead to a downgrade include a downgrade of the sovereign rating or an economic recession significantly worse than expected.

Impact on assets 4

Financials▲
Digital Finance & Tokenization▲
Bangkok Bank PCL
BBL
▲ PositiveCapitalrelevance

Fitch kept BBL's outlook at Stable and revised its funding and liquidity factor score outlook to Stable from Negative.

Others▲