Fitch upgrades Thai banks

Fitch Ratings said it upgraded the national long-term ratings of TMB Bank PCL and Thanachart Bank PCL to AA-(tha) from A+(tha), and the national long-term rating of Thanachart Capital PCL to A+(tha) from A(tha) and its national short-term rating to F1+(tha) from F1(tha).

The outlooks are stable.

At the same time, the agency upgraded TMB's Basel 3 tier 2 subordinated notes to A+(tha) from A(tha) and the viability rating of United Overseas Bank (Thai) PCL to bbb- from bb+.

Fitch affirmed the banks' remaining ratings as well as the ratings on Thai Bank PCL, Bank of China (Thai) PCL, Industrial and Commercial Bank of China (Thai) PCL and ICBC (Thai) Leasing Co. Ltd.

Fitch has also affirmed CIMB Thai Auto Co., Ltd.'s bond issue guaranteed by CIMB Thai Bank.

The agency said TMB's upgrade reflects Fitch's assessment of reduced gaps, such as asset quality, when comparing TMB's credit profile with Thailand's higher-rated private-sector banks.

These higher-rated banks have national ratings of AA+(tha), although their viability ratings of bbb+ equate to Thailand's (BBB+/stable) ratings, Fitch said.

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