Fitch rates Bank of Ayudhya bonds AAA(tha)

Fitch Ratings said it assigned national long-term ratings of AAA(tha) to Bank of Ayudhya PCL's upcoming issue of senior unsecured bonds.

The bonds will have tenors of two- and three-years, Fitch said, and the total issue size will be up to 12 billion in Thai baht.

The proceeds will be used for refinancing and general corporate purposes, Fitch said.

The bonds are rated at the same level as the bank’s AAA(tha) national long-term rating as they represent unsubordinated and unsecured obligations, the agency said.

The ratings reflect a belief that the bank is a strategically important subsidiary of its parent, the Bank of Tokyo-Mitsubishi UFJ, Ltd.

Bank of Tokyo-Mitsubishi holds 76.9% of Bank of Ayudhya and the Thai bank is a key part of the parent's strategy for Southeast Asia with high levels of management control and integration, Fitch said.

The rating on the bonds is sensitive to any changes in the bank’s national rating, the agency added.

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