Moody's rates Kasikornbank bonds A3

Moody's Investors Service said it assigned an A3 rating to the dollar-denominated senior notes that Kasikornbank PCL plans to issue under its $2.5 billion euro medium-term note program. The outlook is stable.

The agency said the bank's ratings reflect its entrenched deposit franchise in Thailand and the steady improvements in its risk-adjusted profitability, both of which have supported its increasing capitalization levels, enhanced its loss-absorption capacity and resulted in its robust liquidity profile. They also reflect the Government of Thailand's track record of support for Thai banks and Moody's assessment of the very high probability of systemic support for Kasikornbank given its strong market position.

The ratings also take into consideration the bank's weaker capitalization profile when compared to its global and domestic peers and its high credit concentration to individual borrowers and industry sectors, Moody's said.

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