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Fitch Rates Siam Commercial Bank's Senior Notes at 'BBB+(EXP)'
November 10, 2017 / 6:33 AM / 8 days ago

Fitch Rates Siam Commercial Bank's Senior Notes at 'BBB+(EXP)'

(The following statement was released by the rating agency) BANGKOK/SINGAPORE, November 10 (Fitch) Fitch Ratings has assigned The Siam Commercial Bank Public Company Limited's (SCB; BBB+/Stable/bbb+) proposed US-dollar denominated senior unsecured notes an expected 'BBB+(EXP)' rating. The notes will be issued under the bank's USD3.5 billion medium-term note programme. The proposed tenure for the notes will be up to 5.5 years. SCB plans to use issuance proceeds for general corporate and funding purposes. The final rating is subject to the receipt of final documentation conforming to information already received. KEY RATING DRIVERS The proposed senior notes are rated at the same level as SCB's Long-Term Foreign-Currency Issuer Default Rating (IDR), as they will represent its unsecured and unsubordinated obligations. SCB's IDR is driven by its standalone credit profile and reflects its strong domestic franchise, large client base and solid financial performance record. RATING SENSITIVITIES The rating of the proposed senior unsecured notes would be directly affected by any changes in SCB's Long-Term Foreign-Currency IDR, which in turn is driven by its Viability Rating of 'bbb+'. A significant and sustained financial deterioration, beyond Fitch's expectations, in asset quality or profitability, without the maintenance of adequate buffers, could lead to negative rating action. There is unlikely to be any rating upside, as SCB's IDR is already at the same level as the Thai sovereign. For further details on SCB's key rating drivers and rating sensitivities, refer to the rating action commentary "Fitch Affirms Thailand's Four Largest Commercial Banks" dated 9 May 2017 and available at www.fitchratings.com Contact: Primary Analyst Ambreesh Srivastava Senior Director +65 6796 7218 Fitch Ratings Singapore Pte Ltd. One Raffles Quay South Tower #22-11 Singapore 048583 Secondary Analyst Parson Singha, CFA Senior Director +662 108 0151 Committee Chairperson Jonathan Cornish Managing Director +852 2263 9901 Date of Relevant Rating Committee: 8 May 2017 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com. Additional information is available on www.fitchratings.com Applicable Criteria Global Bank Rating Criteria (pub. 25 Nov 2016) here 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#solicitation 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 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. DIRECTORS AND SHAREHOLDERS RELEVANT INTERESTS ARE AVAILABLE here. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Copyright © 2017 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. 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Users of Fitch’s ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. 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