Fitch Ratings has assigned CIMB Thai Bank Public Company Limited’s (CIMBT) upcoming senior unsecured medium-term note (MTN) programme National Long-Term Rating of ‘AA(tha)’ and National Short-Term Rating of ‘F1+(tha)’.
The ratings are aligned with CIMBT’s existing National Long-Term Rating of ‘AA(tha)’ with a Stable Outlook, and National Short-Term Rating of ‘F1+(tha)’, reflecting Fitch’s assessment that the senior notes issued under the programme represent unsecured and unsubordinated obligations of the bank.
Fitch said the MTN programme, which will be registered with the Thai Bond Market Association, allows notes to be issued in Thai baht or foreign currencies.
The ratings are supported by Fitch’s view that there is a high probability of extraordinary support from CIMBT’s Malaysia-based parent, CIMB Bank Berhad, should the need arise.
Fitch highlighted that CIMBT plays a strategically important role in supporting the CIMB Group’s ASEAN-focused strategy.
The rating agency also noted CIMB Bank’s strong ownership and control over CIMBT, with a 94.8% stake, alongside significant management and operational influence as well as strong reputational linkages between the two entities.
Fitch said any downgrade of CIMBT’s National Ratings would result in a similar rating action on the MTN programme.
Conversely, an upgrade of CIMBT’s National Long-Term Rating would lead to a corresponding upgrade for the MTN programme’s National Long-Term Rating, although there is no upside potential for the National Short-Term Rating as it is already at the highest level on the scale.
CIMBT’s national ratings remain linked to the standalone credit profile of CIMB Bank, Fitch added.
