Fitch rates KT Zmico debt A+(tha)

Fitch Ratings said it assigned a national long-term rating of A+(tha) and national short-term rating of F1+(tha) to KT Zmico Securities Co. Ltd.

The outlook is stable.

The agency also said it assigned an A+(tha) rating on its outstanding senior unsecured debt.

The ratings reflect an assessment of extraordinary support from its majority shareholder, Krung Thai Bank PCL, which owns 50% of the securities firm, Fitch said.

The company was rated three notches lower than the parent bank to reflect the near-parity of KT Zmico's majority and minority shareholders, as well as weaker branding linkages than at the securities subsidiaries of other large domestic banks, the agency said.

The ratings also address a degree of uncertainty over the government's actions and priorities in its role as the group's ultimate shareholder if the bank were unable to support the subsidiary on its own in a stress scenario, Fitch said.

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