Moody’s could cut Standard Chartered Bank (Thai)

Moody's Investors Service said it placed the ratings of Standard Chartered Bank (Thai) PCL (SCBT) under review for downgrade.

The affected ratings are the long-term local currency bank deposit rating, local and foreign currency long-term issuer ratings of A3, the counterparty risk assessment (CR Assessment) of A2(cr)/P-1(cr) and adjusted baseline credit assessment (BCA) of a3.

The foreign currency bank deposit rating of Baa1 was affirmed. The baseline credit assessment is unchanged at baa3.

The review for downgrade was driven by the placing under review for downgrade of the ratings of its parent, Standard Chartered Bank (SCB, foreign currency deposits Aa2 rating under review for downgrade, BCA a2, rating under review for downgrade), on Nov. 9.

On Nov. 9 the long-term ratings of Standard Chartered Bank were placed under review for downgrade, following the bank's announcement of a pre-tax loss of $139 million in the third quarter of 2015, as well as a number of strategic initiatives to improve its solvency and profitability.

A downgrade of Standard Chartered Bank’s ratings is likely if Moody's assesses that credit concerns relating to its profitability and asset quality outlook outweigh the expected improvement in its capital.

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