Post by account_disabled on Dec 30, 2023 11:54:43 GMT
Fitch Ratings Company (Thailand) has affirmed the National Rating of the Small and Medium Enterprise Development Bank of Thailand (SME BANK) at 'AAA(tha)' with a stable rating outlook. and maintains short-term credit rating at 'F1+(tha)' Factors supporting credit rating SME BANK's National Rating reflects Fitch's view that SME BANK will receive extra support beyond normal operations. (extraordinary support) from the government in case of necessity Considering the bank's legal status, which is a state bank established under a specific act to support government policy, SME BANK has close ties with the government.
And has direct government C Level Executive List shareholding at 98.9% In addition, the bank has continuously received financial ***istance from the government since the past. This includes providing compensation for losses from project operations as approved by the Cabinet. In addition, the bank has always received capital support from the government and expects to receive another large capital increase in the short term. Banks can also ask the Ministry of Finance to guarantee bank bonds to support funding plans. The most recent example is bank bonds totaling 21 billion in October 2019, which were guaranteed by the Ministry of Finance.
The Bank's Stable Rating Outlook reflects Fitch's expectation that government support opportunities for the bank are unlikely to weaken in the medium term. Factors supporting credit rating SME BANK's National Rating has no chance of an upgrade as the bank's National Rating is at its highest level. This, in turn, signals a decrease in the likelihood of government support for SME banks, such as in the event of a change in the bank's legal status. or a reduction in the government's shareholding could result in Fitch downgrading the rating. However, Fitch believes this is unlikely to happen in the medium term.
And has direct government C Level Executive List shareholding at 98.9% In addition, the bank has continuously received financial ***istance from the government since the past. This includes providing compensation for losses from project operations as approved by the Cabinet. In addition, the bank has always received capital support from the government and expects to receive another large capital increase in the short term. Banks can also ask the Ministry of Finance to guarantee bank bonds to support funding plans. The most recent example is bank bonds totaling 21 billion in October 2019, which were guaranteed by the Ministry of Finance.
The Bank's Stable Rating Outlook reflects Fitch's expectation that government support opportunities for the bank are unlikely to weaken in the medium term. Factors supporting credit rating SME BANK's National Rating has no chance of an upgrade as the bank's National Rating is at its highest level. This, in turn, signals a decrease in the likelihood of government support for SME banks, such as in the event of a change in the bank's legal status. or a reduction in the government's shareholding could result in Fitch downgrading the rating. However, Fitch believes this is unlikely to happen in the medium term.