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Fitch Revises Outlooks on Bank of Ayudhya, Easy Buy to Stable
May 9, 2017 / 4:58 AM / in 7 months

Fitch Revises Outlooks on Bank of Ayudhya, Easy Buy to Stable

(The following statement was released by the rating agency) BANGKOK/SINGAPORE, May 09 (Fitch) Fitch Ratings has today revised the rating Outlooks on Bank of Ayudhya Public Company Limited (BAY) and Easy Buy Public Company Limited (EB) to Stable from Negative. At the same time, Fitch has affirmed the Long-Term Issuer Default Rating (IDR) of BAY at 'A-' and the National Long-Term Rating of EB at 'AA+(tha)'. All other ratings of the issuers are not immediately affected by our action today. The Outlook revisions follows the similar revision in the Outlooks in BAY's parent, Bank of Tokyo-Mitsubishi UFJ Ltd. (BTMU) and EB's parent, ACOM Co., Ltd. (ACOM), on 2 May 2017 (see <a href=""> Fitch Revises Outlooks for Japanese Major Banks to Stable; Upgrades VR of MHFG). The revision of Outlooks came after the affirmation of Japan's sovereign rating at 'A' and revision of the Outlook to Stable from Negative on 27 April 2017 (see <a href=" here">Fitch Revises Outlook on Japan to Stable; Affirms at 'A'). A full list of rating actions is at the end of this rating action commentary. KEY RATING DRIVERS BAY's Long-Term IDR and EB's National Long-Term Rating are driven by Fitch's view that these entities are strategically important subsidiaries of their respective parents BTMU and ACOM. This is due to high levels of parent shareholding and control, management integration, and histories of support. Hence Fitch believes there would be a high probability of extraordinary support for the subsidiaries if required. The Stable Outlooks are consistent with the Stable Outlooks of the parents. RATING SENSITIVITIES BAY's Long-Term IDR of 'A-' is unlikely to be upgraded as it is currently rated at Thailand's Country Ceiling; however, a downgrade of its parent's Long-Term IDR could result in a similar rating action at BAY. Any changes in the ratings or credit profile at ACOM would similarly affect the National Long-Term Rating of EB. An indication of material weakening in the parents' propensity to provide extraordinary support to their respective subsidiaries could result in downgrade the ratings. For example, this could be indicated by a significant reduction in ownership in the subsidiaries or level of commitment to provide financial support. However, Fitch does not view this as likely in the medium term. The following ratings are not affected by this action and remain unchanged: BAY Short-Term IDR: 'F2' Viability Rating: 'bbb' Support Rating: '1' National Long-Term Rating affirmed at 'AAA(tha)'; Stable Outlook National Short-Term Rating: 'F1+(tha)' National Long-Term Rating on senior unsecured debt: 'AAA(tha)' National rating on Legacy Basel II subordinated debt: 'AA+(tha)' National rating on subordinated debt Basel III Tier 2: 'AA+(tha)' EB: National Short-Term Rating: 'F1+(tha)' National Long-Term Rating on senior unsecured bonds: 'AA+(tha)' Contact: Primary Analysts Ambreesh Srivastava (BAY International Ratings) Senior Director +65 6796 7218 Fitch Ratings Singapore Pte Ltd 6 Temasek Boulevard #35-05 Suntec Tower Four Singapore 038986 Parson Singha (BAY National Ratings) Senior Director +66 2108 0151 Fitch Ratings (Thailand) Limited Park Ventures, Level 17 57 Wireless Road, Lumpini, Patumwan, Bangkok 10330 Patchara Sarayudh (EB) Director +66 2108 0152 Secondary Analysts Parson Singha (BAY International Ratings) Senior Director +66 2108 0151 Jackerin Jeeradit (BAY National Ratings) Associate Director +66 2108 0163 Thanasit Utamaphethai (EB) Associate Director +66 2108 0154 Committee Chairperson Jonathan Cornish Managing Director +852 2263 9901 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: Note to Editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(tha)' for National ratings in Thailand. Specific letter grades are not therefore internationally comparable. Additional information is available on Applicable Criteria Global Bank Rating Criteria (pub. 25 Nov 2016) here Global Non-Bank Financial Institutions Rating Criteria (pub. 10 Mar 2017) here National Scale Ratings Criteria (pub. 07 Mar 2017) here Additional Disclosures Dodd-Frank Rating Information Disclosure Form here Solicitation Status here#solicitation Endorsement Policy here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. DIRECTORS AND SHAREHOLDERS RELEVANT INTERESTS ARE AVAILABLE here. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Copyright © 2017 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. 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Users of Fitch’s ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed. The information in this report is provided “as is” without any representation or warranty of any kind, and Fitch does not represent or warrant that the report or any of its contents will meet any of the requirements of a recipient of the report. A Fitch rating is an opinion as to the creditworthiness of a security. This opinion and reports made by Fitch are based on established criteria and methodologies that Fitch is continuously evaluating and updating. Therefore, ratings and reports are the collective work product of Fitch and no individual, or group of individuals, is solely responsible for a rating or a report. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. 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