Fitch rates Kasikornbank notes AA-(tha)

Fitch Ratings said it assigned a national rating of AA-(tha) to Kasikornbank PCL’s upcoming Thai baht-denominated Basel III-compliant tier 2 subordinated unsecured notes.

This is the second such issue by the bank, which will use the proceeds to strengthen its tier 2 capital, Fitch said, and for general corporate purposes.

The notes are rated one notch below the anchor rating to reflect their higher loss-severity risk relative to senior unsecured instruments arising from their subordinated status, the agency said.

The tier 2 notes are senior to any additional tier 1 securities with loss-absorption features, Fitch added.

The bank’s stand-alone financial strength is driven by its strong domestic franchise and market share, the agency said.

The bank also has sound and improving asset quality, steady funding and liquidity, strong capitalization and high profitability, Fitch said.

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