April 3, 2017 / 9:25 AM / 5 months ago

Fitch Rates Yuanta Securities (Thailand) 'AA(tha)'; Outlook Stable

(The following statement was released by the rating agency) BANGKOK, April 03 (Fitch) Fitch Ratings (Thailand) has assigned Yuanta Securities (Thailand) Company Limited (YSTH) a National Long-Term Rating of 'AA(tha)' with a Stable Outlook and a National Short-Term Rating of 'F1+(tha)'. KEY RATING DRIVERS NATIONAL RATINGS YSTH's ratings are driven by institutional support. Fitch assesses YSTH as a strategically important subsidiary of Yuanta Financial Holding Co., Ltd. (YFHC; BBB+/Stable). The group has completely owned its Thai subsidiary since July 2016, after acquiring what was then KKTRADE Securities Company Limited from Phatra Capital Public Company Limited. The parent allows YSTH to share its brand and has committed itself to its Thai subsidiary operationally and financially, providing funding and new capital. The group also exercises management control over YSTH and has started integrating it with the group. Fitch believes YSTH plays an important role in the group's wider growth strategy in south-east Asia and will benefit from its parent's regional franchise over the long term. YSTH is poised to transform itself under its new leadership from an exclusively retail broker to a full-service securities firm. YSTH's franchise will mostly likely strengthen through close collaboration with the group and synergies with its parent. RATING SENSITIVITIES NATIONAL RATINGS Any changes in YFHC's Long-Term Foreign-Currency IDR may lead to changes in YSTH's National Ratings, which are also sensitive to changes in Thailand's Long-Term Local-Currency IDR of 'BBB+' with Stable Outlook. The agency may downgrade YSTH's National Ratings if YFHC lowers its propensity to provide extraordinary support to its subsidiary, either by significantly reducing its shareholding or financial commitment. The agency views this to be unlikely in the near term due to the group's recent entry into the Thai market in 2016. Contact: Primary Analyst Jackerin Jeeradit Associate Director +66 2108 0163 Fitch Ratings (Thailand) Limited Park Ventures, Level 17 57 Wireless Road, Lumpini, Patumwan, Bangkok 10330 Secondary Analyst Patchara Sarayudh Director +66 2108 0152 Committee Chairperson Mark Young Managing Director +65 6796 7229 Date of Relevant Rating Committee: 30 March 2017 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com. Note to editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(tha)'for National ratings in Thailand. Specific letter grades are not therefore internationally comparable. Additional information is available on www.fitchratings.com Applicable Criteria Global Non-Bank Financial Institutions Rating Criteria (pub. 10 Mar 2017) here National Scale Ratings Criteria (pub. 07 Mar 2017) here Additional Disclosures Solicitation Status here Endorsement Policy here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT <a href="https://www.fitchratings.com">WWW.FITCHRATINGS.COM.. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. 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