Fitch Rates MBKET's Thai Baht Subordinated Debentures 'AA(tha)'

          Fitch Ratings (Thailand) has today assigned a National Long-Term Rating of 'AA(tha)' to Maybank Kim Eng Securities (Thailand) Public Company Limited's (MBKET; AA+(tha)/Stable) upcoming Thai baht subordinated debentures. The issuance size will be up to THB500 million with a maximum tenor of one year. The firm plans to use the proceeds from the issuance to manage its funding and liquidity requirements. 
          KEY RATING DRIVERS 
          The subordinated debt is rated one notch below MBKET's National Long-Term Rating of 'AA+(tha)' to reflect the notes' higher loss-severity risks compared with senior unsecured instruments. The notching also incorporates the subordinated debentures' lack of going-concern loss absorption and equity conversion. Fitch has assigned an equity credit of 0% to the issue as the tenor is relatively short and the instrument is not designed to be a permanent part of the company's capital structure. 
          The agency has used MBKET's National Long-Term Rating of 'AA+(tha)' as the anchor rating for the subordinated instrument. Institutional support underpins MBKET's National Long-Term Rating as the Thai firm is strategically important to Malaysia-based Malayan Banking Berhad (Maybank; A-/Stable), which holds a majority stake in MBKET.
          RATING SENSITIVITIES
          Changes to Fitch's view on Maybank's capacity and propensity to provide timely extraordinary support to MBKET could impact MBKET's National rating and hence the rating of the subordinated notes.