Fitch rates Kasikornbank notes AA-(tha)

Fitch Ratings said it assigned an AA-(tha) rating to Kasikornbank PCL’s proposed Thai baht-denominated subordinated unsecured notes.

This will be the bank’s first issue of a Basel III-compliant tier 2 instrument.

The proceeds will be used to strengthen its tier 2 capital and for general corporate purposes, Fitch said.

The Basel III tier 2 notes are rated one notch below the bank’s AA(tha) anchor rating to reflect the higher loss-severity risk relative to senior unsecured instruments arising from their subordinated status, the agency said.

The ratings also consider the bank’s solid domestic franchise, improved asset quality, steady funding, sound capitalization and high profitability, Fitch said.

The bank’s other ratings are unaffected, including its BBB+ long-term foreign-currency issuer default rating, F2 short-term foreign-currency issuer default rating, BBB+ viability rating, AA(tha) national long-term rating, F1+(tha) national short-term rating, BBB+ long-term foreign-currency senior unsecured debt rating, F1+(tha) national short-term senior unsecured debt rating and AA-(tha) national long-term rating on its subordinated debt legacy Basel II tier 2 securities.

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