TRIS Rating Co., Ltd. has placed a CreditAlert with “negative” implication for the company rating of TMB Bank PLC (TMB) and the ratings of its debentures following the preliminary first half of 2007 earnings announcement. TMB and its subsidiaries reported net losses of Bt6.1 billion for the second quarter of 2007, compared to a net profit of Bt220 million in the first quarter of 2007. For the first half of 2007, TMB reported net losses of Bt5.9 billion compared to net profits of Bt3.3 billion for the first half of 2006. The net loss is due mainly to the additional loan provisioning expenses of Bt8.2 billion during the first half of 2007 to comply with phase 2 of the Bank of Thailand’s (BOT) guidelines in preparation for IAS39. This is also to reserve for the Bt11 billion new non-performing loans, which were reclassified from performing loans, in consultation with BOT in the second quarter of 2007.
This action reflects TRIS Rating’s assessment that, given TMB’s requirement to set aside higher provisions than initial expectation reflecting deteriorated assets quality, coupled with the continuing delays of the bank’s recapitalization plan, may negatively impact on the ratings. The uncertainty on recapitalization plan and continuing lower profitability foreseen in the second half of 2007 under unfavorable economic environment will inevitably impact on the bank’s financial position and its current weak capital. In the near future, if TMB could not declare concrete plan for recapitalization, TRIS Rating is likely to lower the ratings of the bank.
Presently, TRIS Rating has assigned TMB with a “A” company rating and a “A-” rating for its Bt8,000 million subordinated debentures. -- End
TMB Bank PLC (TMB)
Company Rating: A
Issue Rating:
TMB153A: Bt8,000 million subordinated debentures due 2015 A-
CreditAlert Designation: Negative
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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.
This action reflects TRIS Rating’s assessment that, given TMB’s requirement to set aside higher provisions than initial expectation reflecting deteriorated assets quality, coupled with the continuing delays of the bank’s recapitalization plan, may negatively impact on the ratings. The uncertainty on recapitalization plan and continuing lower profitability foreseen in the second half of 2007 under unfavorable economic environment will inevitably impact on the bank’s financial position and its current weak capital. In the near future, if TMB could not declare concrete plan for recapitalization, TRIS Rating is likely to lower the ratings of the bank.
Presently, TRIS Rating has assigned TMB with a “A” company rating and a “A-” rating for its Bt8,000 million subordinated debentures. -- End
TMB Bank PLC (TMB)
Company Rating: A
Issue Rating:
TMB153A: Bt8,000 million subordinated debentures due 2015 A-
CreditAlert Designation: Negative
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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.