Fitch Assigns KT ZMICO First-Time 'A+(tha)' Rating; Outlook Stable

          Fitch Ratings has today assigned Thailand-based KT ZMICO Securities Company Limited (KTZ) a National Long-Term Rating of 'A+(tha)' and a National Short-Term Rating of 'F1+(tha)'. The Outlook is Stable. The agency has also rated KT ZMICO's outstanding senior unsecured debt at 'A+(tha)'.

          KEY RATING DRIVERS           
          NATIONAL RATINGS AND SENIOR DEBT
          KTZ's National Long-Term Rating reflects Fitch's assessment of extraordinary support from its majority shareholder, Krung Thai Bank Public Company Limited (KTB; AA+(tha)/Stable), which owns 50% of the securities firm. The agency also rates KTZ's senior unsecured debt at the firm's National Long-Term Rating as a default of its senior debt represents a default of the entity.
          Fitch has rated KTZ three notches below KTB's National Long-Term Rating to reflect the near-parity of KTZ's majority and minority shareholders as well as weaker branding linkages than at the Fitch-rated securities subsidiaries of other large domestic banks. The rating also addresses a degree of uncertainty over the government's actions and priorities in its role as the group's ultimate shareholder if KTB, the immediate parent, were unable to support the subsidiary on its own when under financial stress. However, KTB supports KTZ operationally and financially by giving liquidity lines, providing high-level oversight through KTZ's board, and integrating the firm within KTB's overall strategy, with evidence of linkages in IT and product development. KTZ, in turn, provides key products and services for KTB's clients, and shows strong synergies with its parent bank. 
          RATING SENSITIVITIES
          NATIONAL RATINGS AND SENIOR DEBT
          Changes in KTB's credit profile may affect KTZ's ratings. As a result, KTZ's national ratings would likely move in the same direction as those of its parent. 
          The agency may upgrade KTZ's national ratings if KTB demonstrates greater propensity for supporting the subsidiary than our current assessment. This may happen, for example, if KTB acquires an additional stake in the company or if KTZ plays a more significant role for the bank. Fitch sees profitability, branding linkages and operational integration with KTB as key to assessing the significance of KTZ's role. 
          Conversely, Fitch could downgrade KTZ's national ratings if its strategic importance to the bank were to diminish and thereby reduce the parent's propensity to extend support. This may happen if KTB reduces its stake, if it withholds its financial or operational commitments to its subsidiary, or if future performance of the subsidiary or at the parent bank leads to changes in strategic priorities and raises questions over support prospects from the parent.