By The Nation
The rating of the listed securities house is enhanced from its stand-alone credit profile to reflect its status as a highly strategic subsidiary of the Thanachart Group, TRIS said on Tuesday.
The stand-alone rating is based on Thanachart Securities’ experienced and prudent management team, the company’s ability to maintain the market position of its core business, and its sufficient liquidity and capital position.
The rating also takes into account the benefits the company could realise from further utilising Thanachart Bank’s nationwide branch network and corporate-client relationships to strengthen its market position.
The rating is, however, constrained by the cyclical and volatile nature of the securities industry and the downward pressure on commission rates from intensifying competition, TRIS said.
The “stable” outlook reflects the expectation that Thanachart Securities will maintain its status as a highly strategic subsidiary of the Thanachart Group and continue to receive strong support from Thanachart Bank, it added.