Fitch rates Bangkok Commercial notes AA-(tha)

Fitch Ratings (Thailand) said it assigned Bangkok Commercial Asset Management PCL’s (AA-(tha)/negative) upcoming senior unsecured notes of up to 8 billion Thai baht a rating of AA-(tha).

The notes will be issued in tranches with maturities of up to 10 years. The issuer has an option to redeem the notes after five years.

Proceeds will be used for general corporate purposes and refinancing.

The notes are rated at the same level as Bangkok Commercial’s national long-term rating as they represent its unsubordinated and unsecured obligations.

Fitch said the ratings are driven by sovereign support. Bangkok Commercial is fully owned by the Financial Institutions Development Fund, which is a unit of the Bank of Thailand.

Ongoing state support is evident through regulatory advantages, such as Bangkok Commercial’s notes being classified as banks' liquid assets, and tax exemptions, which support its funding ability and profitability, the agency explained.

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