Post by account_disabled on Dec 30, 2023 6:00:26 GMT 1
Fitch adjusts TMB's minimum support rating to 'BBB-', increasing the support rating. and cancel the credit judgment, the trend is positive. unnamed%2B%25284%2529 Fitch Ratings has announced an upgrade of the Support Rating Floor of TMB Bank Public Company Limited (TMB) to 'BBB-' from 'BB+' and an upgrade of the Support Rating to '2' from 'BB+'. '3' At the same time, Fitch has also removed the Rating Watch Positive from the rating. This rating announcement comes after the merger between TMB and Thanachart Bank Public Company Limited (TBANK) was completed according to the bank's plan on December 3, 2019. Fitch has assigned a Positive Outlook to TMB's Support Ratings and Support Ratings since September 3, 2019, following the announcement of the merger with TBANK and a timeline for implementation. In this regard, TMB's other credit ratings are not affected by this announcement of credit ratings. The rating upgrade announcement is in line with Fitch's earlier expectation that TMB's importance to the country's economic and financial system will greatly increase after the merger. This is because the bank will have a large increase in market share in terms of deposits and assets.
This would be similar to the five other banks identified as commercial banks with significant systemic risk in the country. Domestically Systematic Important Bank (DSIB) Rating Support TMB has successfully merged with TBANK to become the sixth-largest commercial bank in Thailand, and Fitch believes there is a high possibility of this. The government will provide assistance and support. (extraordinary support) to TMB in a timely manner in case of necessity Fitch expects that the merger will result in TMB's deposit and asset size doubling to approximately 1.4 trillion baht and 1.9 trillion baht, respectively (estimated from financial statements as of the end of September 2019). Banks' market share in Telegram Number Data deposits and loans will also increase significantly to approximately 10% and 9%, respectively, which will be at a level similar to the market share of commercial banks, which has implications for commercial risk. The domestic system is in the range of approximately 11%-17%. TMB expects that the integration process and transfer of the entire business of TBANK will be completed within 2021. Factors that may affect the rating in the future Changes in the government's ability to support TMB could affect the bank's Support Rating Floor, for example, an upgrade of TMB's Long-Term Foreign Currency Issuer Default Rating. Thailand, which is at BBB+/Positive Rating Outlook.
This may result in the Minimum Support Rating being upgraded to 'BBB', conversely, downgrading Thailand's credit rating. (which is unlikely to happen in the short term Due to the current rating trend being positive), TMB's Support Rating may be downgraded to the 'BB' range, while the Support Rating is unlikely to change. unless the minimum support rating is adjusted to the range of other ratings. The Support Rating Floor and Support Ratings could be negatively affected if Fitch believes the government's opportunity to support TMB declines. This could happen if there are signs indicating that TMB's importance to the country's economic and financial system has decreased or if resolution legislation is issued that causes the government to weaken the trend. Support for banks is less likely than Fitch currently expects. Consideration of environmental, social and governance (ESG) factors If no additional details are disclosed in this section. This indicates that the bank's ESG relationship score to its credit rating is not higher than level 3, which means that ESG factors have no or may have a minimal impact on the bank's credit rating. Whether due to factors from the nature of the business or from the management of the bank. More information can be obtained from ESG Relevance Scores, esg.
This would be similar to the five other banks identified as commercial banks with significant systemic risk in the country. Domestically Systematic Important Bank (DSIB) Rating Support TMB has successfully merged with TBANK to become the sixth-largest commercial bank in Thailand, and Fitch believes there is a high possibility of this. The government will provide assistance and support. (extraordinary support) to TMB in a timely manner in case of necessity Fitch expects that the merger will result in TMB's deposit and asset size doubling to approximately 1.4 trillion baht and 1.9 trillion baht, respectively (estimated from financial statements as of the end of September 2019). Banks' market share in Telegram Number Data deposits and loans will also increase significantly to approximately 10% and 9%, respectively, which will be at a level similar to the market share of commercial banks, which has implications for commercial risk. The domestic system is in the range of approximately 11%-17%. TMB expects that the integration process and transfer of the entire business of TBANK will be completed within 2021. Factors that may affect the rating in the future Changes in the government's ability to support TMB could affect the bank's Support Rating Floor, for example, an upgrade of TMB's Long-Term Foreign Currency Issuer Default Rating. Thailand, which is at BBB+/Positive Rating Outlook.
This may result in the Minimum Support Rating being upgraded to 'BBB', conversely, downgrading Thailand's credit rating. (which is unlikely to happen in the short term Due to the current rating trend being positive), TMB's Support Rating may be downgraded to the 'BB' range, while the Support Rating is unlikely to change. unless the minimum support rating is adjusted to the range of other ratings. The Support Rating Floor and Support Ratings could be negatively affected if Fitch believes the government's opportunity to support TMB declines. This could happen if there are signs indicating that TMB's importance to the country's economic and financial system has decreased or if resolution legislation is issued that causes the government to weaken the trend. Support for banks is less likely than Fitch currently expects. Consideration of environmental, social and governance (ESG) factors If no additional details are disclosed in this section. This indicates that the bank's ESG relationship score to its credit rating is not higher than level 3, which means that ESG factors have no or may have a minimal impact on the bank's credit rating. Whether due to factors from the nature of the business or from the management of the bank. More information can be obtained from ESG Relevance Scores, esg.