TRIS Rating Co., Ltd. has affirmed the ratings of TISCO Bank PLC (TISCO) and its senior debentures at “A” with “stable” outlook. The ratings reflect TISCO’s capable management team, the bank’s good
risk management system, its good asset quality, its strong market position in the hire purchase business, and its better diversification of income sources. The ratings take into account TISCO’s benefits as a commercial bank which will provide the bank with higher financial liquidity and flexibility, and long-term opportunities in commercial banking businesses. However, the ratings are partially constrained by uncertain economic factors, uncertainty in the securities industry, intensifying competition in the corporate and retail finance industry and TISCO’s limited branch network compared with other well-established commercial banks.
The “stable” outlook reflects the likelihood that TISCO will deliver a medium-term financial performance as expected, and the commercial banking business platform will benefit the bank in terms of expanded scope of business and financial flexibility and liquidity. The bank’s good risk management system, its proven track record and its strong capital fund will help mitigate future downside risks from uncertain economic and business environment.
TRIS Rating reported that TISCO is ranked twelfth among all 14 Thai universal banks in terms of asset size. With more than 30 years of experience in the industry, TISCO has developed a proficient management team that has enabled the bank to compete in this very competitive industry. The bank’s good risk management system, experienced management team and strong cushion of capital fund and allowance for loan loss against bad debts should mitigate future downside risks. Management has a clear policy to focus
on consumer finance businesses and to diversify into fee-based businesses.
TRIS Rating said that TISCO Group’s centralization of business operation and management system benefited the overall group’s business control and cost efficiency. During transition period to
settle a universal banking system in the second half of 2005 and in 2006, TISCO faced a slight setback on its financial returns, but this will provide the bank with long-term opportunities in commercial
banking businesses. Less favourable economic environment and rising competition in TISCO’s core business, hire purchase, limited its profitability in the first nine months of 2006, but were traded off
with the bank’s market risk mitigation during rising direction of interest rate trend. -- End
TISCO Bank PLC (TISCO)
Company Rating: Affirmed at A
Issue Ratings:
TSCO077A: Bt2,000 million senior debentures due 2007 Affirmed at A
TSCO077B: Bt1,000 million senior debentures due 2007 Affirmed at A
TSCO07OA: Bt1,800 million senior debentures due 2007 Affirmed at A
Rating Outlook: Stable
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Copyright 2006, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.
risk management system, its good asset quality, its strong market position in the hire purchase business, and its better diversification of income sources. The ratings take into account TISCO’s benefits as a commercial bank which will provide the bank with higher financial liquidity and flexibility, and long-term opportunities in commercial banking businesses. However, the ratings are partially constrained by uncertain economic factors, uncertainty in the securities industry, intensifying competition in the corporate and retail finance industry and TISCO’s limited branch network compared with other well-established commercial banks.
The “stable” outlook reflects the likelihood that TISCO will deliver a medium-term financial performance as expected, and the commercial banking business platform will benefit the bank in terms of expanded scope of business and financial flexibility and liquidity. The bank’s good risk management system, its proven track record and its strong capital fund will help mitigate future downside risks from uncertain economic and business environment.
TRIS Rating reported that TISCO is ranked twelfth among all 14 Thai universal banks in terms of asset size. With more than 30 years of experience in the industry, TISCO has developed a proficient management team that has enabled the bank to compete in this very competitive industry. The bank’s good risk management system, experienced management team and strong cushion of capital fund and allowance for loan loss against bad debts should mitigate future downside risks. Management has a clear policy to focus
on consumer finance businesses and to diversify into fee-based businesses.
TRIS Rating said that TISCO Group’s centralization of business operation and management system benefited the overall group’s business control and cost efficiency. During transition period to
settle a universal banking system in the second half of 2005 and in 2006, TISCO faced a slight setback on its financial returns, but this will provide the bank with long-term opportunities in commercial
banking businesses. Less favourable economic environment and rising competition in TISCO’s core business, hire purchase, limited its profitability in the first nine months of 2006, but were traded off
with the bank’s market risk mitigation during rising direction of interest rate trend. -- End
TISCO Bank PLC (TISCO)
Company Rating: Affirmed at A
Issue Ratings:
TSCO077A: Bt2,000 million senior debentures due 2007 Affirmed at A
TSCO077B: Bt1,000 million senior debentures due 2007 Affirmed at A
TSCO07OA: Bt1,800 million senior debentures due 2007 Affirmed at A
Rating Outlook: Stable
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Copyright 2006, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.