Ratings for SCB's $2.5bn notes
Three rating agencies have assigned ratings for Siam Commercial Bank's US$2.5 billion medium term note (MTN) programme, which was recently revised to allow issue of subordinated notes in addition to senior notes.
The notes will be issued by the bank's Hong Kong branch and listed on the Singapore Stock Exchange.
Fitch Ratings assigned the "BBB+" rating for the issue, reflecting the bank's solid profitability, as well as its adequate liquidity and strong capitalisation. The ratings also reflect SCB's strong domestic franchises in retail and corporate banking. Its key performance metrics compare favourably with those of its global peers. Fitch believes SCB's overall financial position is sufficiently robust to absorb severe credit stress.
Moody's Investors Service assigned "A3", with stable outlook. As Thailand's third-largest bank by assets, Moody's believes that SCB's senior debt and deposit holders would benefit from a very high level of systemic support, which results in a two-notch uplift to the bank's A3 long-term global local currency (GLC) deposit rating from its Baa2 baseline credit assessment (BCA).
Standard & Poor's Ratings Services assigned its 'BBB+' long-term issue rating to the notes.
