Fitch rates Land and Houses notes AA-

Fitch Ratings said it assigned an AA-(tha) rating to Land and Houses Bank PCL’s Thai baht 2.4 billion in subordinated 3.75% notes due 2031 and an AA+ (tha) issuer default rating to the company. The outlook is stable.

Taiwan-based CTBC Bank Co., Ltd. is the largest minority shareholder with a 46.6% stake and the expectation of extraordinary support drives the rating, the agency said.

“CTBC took over management control of LHFG in September 2021 and has re-oriented its growth strategy since then. LH Bank's business profile will further diversify as it expands into SME and retail client segments. Increasing integration with CTBC will also support the growth of loans to Taiwanese corporates and the expansion of cross-border fee-generating business such as trade finance. Significant execution risks are present, but the expansion could boost LHFG's earnings prospects over the medium to long term if it is well managed,” Fitch said in a statement.

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