Fitch puts Bangkok Commercial on watch

Fitch Ratings said it placed Bangkok Commercial Asset Management PCL’s national long-term rating of AA-(tha) and national long-term rating on its senior unsecured debt of AA-(tha) on rating watch negative. The placement follows an announcement the company’s IPO and timeline received the approval of Thai authorities on Nov. 21.

“The RWN reflects a potential rating downgrade as the government’s propensity to provide support to BAM is likely to be reduced after the IPO. The stock-market listing plan indicates that the Financial Institutions Development Fund, a unit of the Bank of Thailand, may cut its stake in BAM to below 50% from 99.99% after the IPO. The level of state linkages with and control over BAM may also decline,” said Fitch in a press release.

The company’s rating is sensitive to shareholder structures changes and any downgrade would depend on BAM’s continued with the Thai government and its level of ownership, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.