TRIS Rating Co., Ltd. announces today that it maintains the “A” rating for TMB Bank PLC (TMB), the “A-” rating for TMB’s Bt8,000 million subordinated debentures (TMB153A) and a “stable” outlook, despite the bank’s weaker than expected unaudited financial performance for 2006.
TRIS Rating said that, TMB had net losses of Bt12,283 million for 2006, which was mainly due to Bt12,940 million of additional provisions following application of International Accounting Standard (IAS 39). Excluding the extraordinary effect of IAS 39, the bank’s operating profit before provision for possible loan losses was in line with TRIS Rating’s expectation, and there was an improvement in asset quality. The bank’s operating profit before provision for possible loan losses was Bt6,458 million, and its ratio of non-performing loans to total loans declined to 10.3% from 12.0% at the end of 2005.
According to TRIS Rating, TMB’s current credit ratings also take into account the bank’s relationship with DBS Bank, a strategic partner holding 16% stake in TMB and the largest bank in Singapore in terms of consolidated assets.
As TMB’s leverage ratios substantially declined due to the reported losses, the bank is now on process of recapitalization. At the end of 2006, the ratios of shareholders’ equity to total assets declined to 6.3% from 7.2% in 2005 and the ratio of shareholders’ equity to total loans decreased to 8.7% from 9.2% in 2005.
Currently, TMB has been assigned a company rating at “A” and issue rating at “A-” with “stable” outlook by TRIS Rating. -- End
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Copyright 2007, 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.
TRIS Rating said that, TMB had net losses of Bt12,283 million for 2006, which was mainly due to Bt12,940 million of additional provisions following application of International Accounting Standard (IAS 39). Excluding the extraordinary effect of IAS 39, the bank’s operating profit before provision for possible loan losses was in line with TRIS Rating’s expectation, and there was an improvement in asset quality. The bank’s operating profit before provision for possible loan losses was Bt6,458 million, and its ratio of non-performing loans to total loans declined to 10.3% from 12.0% at the end of 2005.
According to TRIS Rating, TMB’s current credit ratings also take into account the bank’s relationship with DBS Bank, a strategic partner holding 16% stake in TMB and the largest bank in Singapore in terms of consolidated assets.
As TMB’s leverage ratios substantially declined due to the reported losses, the bank is now on process of recapitalization. At the end of 2006, the ratios of shareholders’ equity to total assets declined to 6.3% from 7.2% in 2005 and the ratio of shareholders’ equity to total loans decreased to 8.7% from 9.2% in 2005.
Currently, TMB has been assigned a company rating at “A” and issue rating at “A-” with “stable” outlook by TRIS Rating. -- End
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Copyright 2007, 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.