Fitch may up Thanachart, Siam City banks

Fitch Ratings said it placed Thanachart Capital plc, Thanachart Bank plc and Siam City Bank plc's ratings on Rating Watch positive following news of the planned acquisition of Siam City Bank by Thanachart Bank.

The ratings on positive watch include:

• Thanachart Capital's long-term national rating of A-(tha), short-term national rating of F2(tha) and long-term national rating of senior unsecured debentures of A-(tha); and

• Thanachart Bank's long-term national rating of A(tha) and short-term national rating of F1(tha); and Siam City Bank's long-term foreign-currency issuer default rating of BB, short-term foreign-currency of B, long-term national rating of A-(tha), short-term national rating of F1(tha) and long-term national rating of subordinated unsecured debentures of BBB+(tha).

The agency said it expects to resolve the watch in July.

The acquisition will result in Thanachart Bank's consolidated assets increasing to about 9% of system assets, increasing systemic importance as the fifth largest banking group in Thailand, Fitch said.

This should also be positive to its capital and funding profile, the agency said, and help improve the group's financial performance.

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