Fitch ups CIMB Thai Bank

Fitch Ratings said it upgraded CIMB Thai Bank PCL's long-term foreign-currency issuer default rating to BBB from BBB-.

The outlook is stable.

The upgrade primarily reflects the bank's stronger strategic and operational integration with CIMB Bank Bhd. of Malaysia, Fitch said, and to a lesser extent, the improvement in the bank's credit profile over the past 12 to 18 months under more benign operating conditions.

The parent's expansion strategy, which is focused on improving its regional presence and franchise, includes growing the contribution from and increasing the business diversity of its Thai subsidiary, the agency said.

However, such expansion consumes capital and resources at the parent level and will take a longer time to reap the benefits, Fitch said.

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