Moody’s rates Kasikornbank notes Baa1

Moody’s Investors Service said it assigned a Baa1 rating to the dollar-denominated senior unsecured notes proposed by Kasikornbank PCL and issued under its $2.5 billion euro medium-term note program.

The bonds will have a maturity of 5.5 years and will be listed on the Singapore Stock Exchange, the agency said. The drawdown will be from the bank’s Hong Kong branch.

The outlook is stable.

The Baa1 senior unsecured debt rating is anchored by the bank’s Baa2 baseline credit assessment and one notch of uplift, reflecting systemic support assumptions, Moody’s said.

Such support is likely, given the size and importance of the bank to the system, as well as the government’s record of support for Thai banks, the agency added.

The baseline rating also takes into account the bank’s strong profitability metrics when compared to local peers, strong loss-absorbing buffers with steady capital levels from prudent capital management and a stable funding profile, which benefits from a large retail deposit base and low reliance on market funds, Moody’s said.

The ratings also consider the bank’s challenging operating environment, the agency said.

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