Fitch Rates KABANK’s Short-Term Debentures at ‘F1+(tha)’

Fitch Ratings (Thailand) has assigned Kasikornbank Public Company Limited’s (KBANK, BBB/AA+(tha)/Stable/bbb) upcoming euro-denominated senior unsecured short-term debentures a National Short-Term Rating of ‘F1+(tha)’.

The notes will be issued under the bank’s THB30 billion medium-term note programme, which allows for issuance in both Thai baht and foreign currencies. The debentures will be offered to institutional investors via a private placement.

 

KEY RATING DRIVERS

Fitch rates KBANK’s euro-denominated senior unsecured short-term debentures at the same level as the bank’s National Short-Term Rating of ‘F1+(tha)’. This is in line with Fitch’s criteria since the senior notes constitute the bank’s unsecured and unsubordinated obligations.

KBANK’s National Ratings are driven by its standalone profile, which reflects its strong domestic banking franchise, strength in digital and transactional banking and broadly stable funding profile. This is balanced by some pressure on its financial profile from the pandemic-related economic disruption in 2020 and the slow recovery that we expect in 2021-2022.

KBANK’s National Ratings are also based on comparisons with other entities rated on the Thai national rating scale. For more details on KBANK’s rating drivers and sensitivities, see the rating action commentary “Fitch Affirms KASIKORNBANK’s IDR at ‘BBB’; Support Rating Floor Revised to ‘BBB'”, dated 26 March 2021