Fitch ups Thanachart, Siam City Bank

Fitch Ratings said it upgraded the ratings of Thanachart Bank PCL, Thanachart Capital PCL and Siam City Bank PCL and removed them from Rating Watch positive following the bank's acquisition of Siam City Bank in the second quarter of 2010.

Thanachart Bank's long-term national rating was upgraded to A+(tha) from A(tha) and short-term national rating to F1+(tha) from F1(tha).

Thanachart Capital's long-term national rating was upgraded to A(tha) from A-(tha), short-term national rating to F1(tha) from F2(tha) and long-term national rating of senior unsecured debentures to A(tha) from A-(tha). Siam City Bank's long-term foreign-currency issuer default rating was upgraded to BBB- from BB, short-term foreign-currency to F3 from B, long-term national rating to A+(tha) from A-(tha), short-term national rating to F1+(tha) from F1(tha) and long-term national rating of subordinated unsecured debentures to A(tha) from BBB+(tha).

The outlook has been revised to stable.

The upgrade is supported by improvements in its market position, capital, liquidity and financial performance, Fitch said.

The upgrade also reflects the greater benefits expected from the stronger operating subsidiary, the agency said.

Profitability measures also have improved, but asset quality measures are now weaker due to the higher non-performing loans at Siam City Bank, Fitch said.

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