Fitch Affirms Three Thai Banks on High Support Possibility
Fitch Ratings on Tuesday affirmed the ratings of three Thailand-based banks, reflecting the high likelihood of extraordinary support from their shareholders or parents.The rating agency maintained the long-term issuer default rating of TMBThanachart Bank (BKK:TTB) at BBB, Bank of Ayudhya (BKK:BAY) at BBB+, and United Overseas Bank (Thai) at A-, among other ratings.Fitch expects a high likelihood of extraordinary support from the Thai government for TMBThanachart Bank if required, given its status as a domestic systemically important bank due to its scale and financial system connections.Bank of Ayudhya and United Overseas Bank (Thai) also have a high probability of support from their respective parents, Japan's Mitsubishi UFJ Financial Group (TYO:8306) and United Overseas Bank (SGX:U11).Bank of Ayudhya and United Overseas Bank (Thai) have an AAA(tha) national long-term rating, reflecting the lowest expectation of default risk compared to other Thai issuers, while TMBThanachart Bank has an AA+(tha) rating.
