Fitch Rates CIMB Thai Bank's MTN Programme 'AA-(tha)'/'F1+(tha)'

The programme can issue a maximum of THB15.0 billion, with allowance for revolving issuance within the next two years. The notes under the programme may be denominated in Thai baht or foreign currencies. Proceeds will be used for the bank's general working-capital requirements.

The ratings apply only to senior unsecured issues under the programme. There is no assurance that notes issued in the future under the programme will be assigned a rating.

KEY RATING DRIVERS
CIMBT's MTN programme is rated at the same level as the bank's National Long-Term Rating of 'AA-(tha)' and National Short-Term Rating of 'F1+(tha)'. This is in line with Fitch's criteria, as the senior notes represent unsecured and unsubordinated obligations of the bank.

CIMBT's National Ratings are based on Fitch's view that there is a high probability the bank would receive extraordinary support from its parent, Malaysia-based CIMB Bank Berhad (CIMB Bank), if needed. We believe CIMBT has an important role in the group as its presence in Thailand is in line with the group's ASEAN strategy and it has marketing synergies with the parent. The ratings also take into consideration CIMB Bank's 94.8% stake in CIMBT, management control, level of integration between CIMBT and the group, and clear brand linkages.

For more details on the rating drivers and sensitivities for CIMBT, please see the rating action commentary Fitch Revises Outlook on CIMB Thai Bank to Stable; Affirms at 'AA-(tha)' dated 24 November 2021.

RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
The programme ratings are sensitive to changes in CIMBT's National Long- and Short-Term Ratings. A downgrade of CIMBT's National Long- and Short-Term Ratings would affect the rating on the MTN programme. However, a downgrade of CIMBT's National Short-Term Rating would only occur if its National Long-Term Rating were to be downgraded to below 'A(tha)'.

Factors that could, individually or collectively, lead to positive rating action/upgrade:
An upgrade of CIMBT's National Long-Term Rating would lead to an upgrade of the MTN programme. The National Short-Term Rating on the MTN programme is the highest rating on the national rating scale and, hence, there is no upside.

DATE OF RELEVANT COMMITTEE
24 November 2021

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
CIMBT's national ratings are linked to the credit profile of CIMB Bank.

• ข่าวCIMB Thai Bank
• ข่าวFitch Ratings
• ข่าวthe programme
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