Fitch rates UOBT notes highly

The notes are rated one notch below the bank’s rating to reflect their subordinated status
In line with other instruments of this type issued domestically in Thailand, the notes include a non-viability trigger for loss absorption (that point being when relevant domestic authorities provide capital support to prevent operating failure), with the provision of a partial rather than a mandatory full write-down.
The notes have no going-concern loss absorption features, and hence there is no additional notching for non-performance risk.
UOBT’s national long term rating is driven by Fitch’s view that the bank is a strategically important subsidiary of Singapore-based United Overseas Bank Limited. UOB fully controls UOBT, with 99.7 per cent ownership, brand- and name-sharing, and a history of operational support.