Post by account_disabled on Dec 27, 2023 7:14:33 GMT
Fitch Ratings announced a downgrade of the Long-Term Foreign Currency IDR to 'BBB+' from 'A-' and revised it to Stable from Negative. This is a result of the downgrade of the international credit rating of the parent bank, MUFG Bank, Ltd. (A-/Stable Outlook/a-), which reflects a deterioration in its ability to provide support. Specially apart from normal operations (extraordinary support) to BAY, and Fitch also affirmed the bank's Short-Term Foreign Currency IDR at 'F1' and Viability Rating at 'bbb'. The National Long-Term Rating has been affirmed at 'AAA(tha)' and upgraded to Stable from Negative. The National Rating on the Senior Notes has been affirmed at 'AAA(tha)'. The National Rating of BAY's Basel 3 Tier 2 subordinated baht-denominated bonds was downgraded to 'AA(tha)' from 'AA+(tha)' to align with the base case. of the subordinated debentures' credit ratings according to Fitch's revised credit rating criteria.
Factors supporting credit ratings – International currency credit ratings in Country Email List foreign currencies Support credit rating National credit rating and the credit rating of senior bonds Foreign currency international credit ratings Support credit rating National credit rating The bank's senior debt rating is a key factor in determining the support rating from MUFG. BAY is a strategically important subsidiary of MUFG in the region and has effective collaboration with the banking group. The mother of banking services in Southeast Asia, MUFG holds a 76.9% stake in BAY and has management control. BAY's National Rating reflects the bank's credit profile relative to Thailand's nationally rated peers. Fitch assesses that BAY's credit profile remains at a level consistent with the strongest in Thailand. The National Rating of the senior notes is at the same level as BAY's National Long-Term Rating, as the notes are the bank's unsubordinated and unsecured obligations.
BAY and MUFG are closely linked and integrate their operations, for example in marketing. Operational aspect And in terms of risk management, BAY is a service provider to Japanese customers in Thailand. And there is cooperation in business with various companies. In the Group's regions, MUFG also provides operational support to BAY, including financial products and IT systems. Factors supporting the credit rating - Financial strength rating BAY's financial strength rating of 'bbb' reflects the bank's credit profile. This is considered from the fact that BAY is one of the five largest banks in Thailand. Its market share in terms of deposits was 11% at the end of 2019. In addition, the bank has diversified operations and supports many customer groups and also offers complete and diverse financial services. In addition to close relationships with Japanese customers, BAY also has a strong market share in the retail lending business. The Viability Rating also reflects Fitch's expectation that the operating environment will be challenging and the economy will be more severely affected by the coronavirus pandemic.
Factors supporting credit ratings – International currency credit ratings in Country Email List foreign currencies Support credit rating National credit rating and the credit rating of senior bonds Foreign currency international credit ratings Support credit rating National credit rating The bank's senior debt rating is a key factor in determining the support rating from MUFG. BAY is a strategically important subsidiary of MUFG in the region and has effective collaboration with the banking group. The mother of banking services in Southeast Asia, MUFG holds a 76.9% stake in BAY and has management control. BAY's National Rating reflects the bank's credit profile relative to Thailand's nationally rated peers. Fitch assesses that BAY's credit profile remains at a level consistent with the strongest in Thailand. The National Rating of the senior notes is at the same level as BAY's National Long-Term Rating, as the notes are the bank's unsubordinated and unsecured obligations.
BAY and MUFG are closely linked and integrate their operations, for example in marketing. Operational aspect And in terms of risk management, BAY is a service provider to Japanese customers in Thailand. And there is cooperation in business with various companies. In the Group's regions, MUFG also provides operational support to BAY, including financial products and IT systems. Factors supporting the credit rating - Financial strength rating BAY's financial strength rating of 'bbb' reflects the bank's credit profile. This is considered from the fact that BAY is one of the five largest banks in Thailand. Its market share in terms of deposits was 11% at the end of 2019. In addition, the bank has diversified operations and supports many customer groups and also offers complete and diverse financial services. In addition to close relationships with Japanese customers, BAY also has a strong market share in the retail lending business. The Viability Rating also reflects Fitch's expectation that the operating environment will be challenging and the economy will be more severely affected by the coronavirus pandemic.