Fitch Ratings (Thailand) has assigned ICBC (Thai) Leasing Company Limited's (ICBCTL: AAA(tha)/Stable/F1+(tha)) upcoming issue of senior unsecured notes a National Long-Term Rating of 'AAA(tha)'.
The notes will be issued under ICBCTL's medium-term note (MTN) programme and the proceeds will be used for debt repayment and/or working capital.
KEY RATING DRIVERS
ICBCTL's senior unsecured notes are rated at the same level as its National Long-Term Rating of 'AAA(tha)' as they represent the company's unsecured and unsubordinated obligations.
Fitch equalizes ICBCTL's National Long-Term Rating with that of its parent bank, Industrial and Commercial Bank of China (Thai) Public Company Limited (ICBCT; AAA(tha)/Stable/F1+(tha)) to reflect Fitch's belief that the company is a core subsidiary of ICBCT and would receive extraordinary support from ICBCT, if needed.
For further details on ICBCTL's key rating drivers and sensitivities, please see our latest commentary, "Fitch Affirms ICBCT and ICBCTL at 'AAA(tha)'; Outlook Stable", dated 16 September 2021, at https://www.fitchratings.com/site/pr/10176568.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:
An upgrade is not possible as the 'AAA(tha)' rating is already at the top-end of the Thailand National Rating scale.
Factors that could, individually or collectively, lead to negative rating action/downgrade:
A downgrade of ICBCTL's National Long-Term Rating would lead to a corresponding downgrade of its senior unsecured debts. Negative rating action may also occur on both ICBCTL and its senior unsecured debt if Fitch no longer believed that ICBCTL is a core subsidiary of ICBCT. For example, this could arise from a material dilution in ICBCT's ownership to below 75% and a withdrawal of its financial commitments, or other strategic actions that indicate a significant reduction in propensity to support ICBCTL. However, Fitch believes this is unlikely to occur in the near term.
DATE OF RELEVANT COMMITTEE
15 September 2021
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
The ratings on ICBCT and ICBCTL are linked to the ratings of Industrial and Commercial Bank of China Limited (A/Stable/F1+), ICBCTL's ultimate parent.
Additional information is available on www.fitchratings.com