Fitch Ratings (Thailand) has affirmed Krungthai XSpring Securities Company Limited's (KTX) National Long-Term Rating at 'AA-(tha)' and National Short-Term Rating at 'F1+(tha)'.
The Outlook is Stable.
Key Rating Drivers
Parent Support Underpins Ratings: KTX's ratings are underpinned by Fitch's expectation of extraordinary support from its major shareholder, Krung Thai Bank Public Company Limited (KTB, AAA(tha)/Stable), in times of need.
The ratings also consider KTX's credit profile relative to other entities on the Thai national rating scale. The Stable Outlook is in line with the Outlook on the parent's National Long-Term Rating.
Anchored to KTB's Credit Profile: The anchor rating for KTX is KTB's support-driven National Long-Term Rating. KTB is one of Thailand's largest banks, and its ratings are driven by expectations of government support due to its systemic importance and as it is the only commercial bank that is majority-owned by the state. We expect support to flow through KTB to KTX due to the reputational and business linkages between two entities.
Ownership Structure Limits Support: KTX's National Long-Term Rating is three notches below KTB's National Long-Term Rating, reflecting KTB's 50% stake and the significant minority holding by XSpring Capital Public Company Limited (49.7%), which Fitch believes may constrain the timeliness and certainty of shareholder support. Fitch views support prospects for KTX to be weaker than fully owned securities subsidiaries of other commercial banks.
Product and Strategy Integration: KTX is KTB's sole securities affiliate, which enables it to leverage the bank's strong domestic franchise and large client base to cross-sell capital market products and services. KTX's strategy and operations are aligned with the bank's through board representation and influence over product development, risk frameworks and governance.
Headwinds Remain for Securities Industry: Thai securities firms remain under pressure from weak stock market sentiment. Equity market trading volume declined by 12% in 2025 (2024: 12% fall), and IPO activity has been muted. Securities companies are increasingly diversifying into wealth management and offshore products, but we expect near-term earnings upside to remain limited and for the market to remain volatile.
Cyclical Profitability: KTX's performance has been weakening since 2021. Annualised operating profit/average equity narrowed further to 0.6% in 9M25 (2024: 2.0%; 2023: 4.8%), although this was in line with subdued market trading activity. Performance is likely to remain variable due to the volatile nature of stock market volumes. However, the company remains profitable, and we do not expect KTB's propensity to support KTX to weaken materially at this juncture.
Ordinary Support for Funding: KTX's group linkages facilitate its access to bank credit facilities and capital-market funding. KTB also provides credit lines to the affiliate, which further reduces funding and liquidity risk.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
Any weakening in KTB's credit profile, as reflected in a downgrade of its National Long-Term Rating, could lead to similar action on KTX.
KTX's ratings could also be downgraded if KTB's propensity to support the company weakens, as indicated by a substantial reduction in KTB's stake and control or diminished business synergies and integration. In such a scenario, we may adopt a standalone-driven rating approach for KTX that could result in a multi-notch downgrade, although we do not expect such a significant change in the near term. Any rating action would also take into account relativities within Thailand's national rating universe.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
Any increase in KTB's propensity to support KTX could result in positive rating action on KTX. This may be indicated by KTB lifting its stake above 75% or otherwise making KTX a consolidated subsidiary, combined with strengthening management control and operational linkages.
There is no upside to the National Short-Term Rating, as it is already at the highest point on the scale.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
KTX's medium-term note (MTN) programme and senior unsecured debt are rated at the same level as the company's National Ratings, as they represent the unsubordinated and unsecured obligations of the borrower.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
Any change in KTX's National Ratings would have a similar effect on the ratings of the MTN programme and senior unsecured notes.
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
KTX's ratings are linked to KTB's local-currency credit profile, as indicated by the parent bank's National Long-Term Rating.
RATING ACTIONS
Entity / Debt
Rating
Prior
Krungthai XSpring Securities Company Limited
Natl LT
AA-(tha)
Affirmed
AA-(tha)
Natl ST
F1+(tha)
Affirmed
F1+(tha)
senior unsecured
Natl LT
AA-(tha)
Affirmed
AA-(tha)
senior unsecured
Natl ST
F1+(tha)
Affirmed
F1+(tha)
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VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
PARTICIPATION STATUS
The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure.
APPLICABLE CRITERIA
National Scale Rating Criteria (pub. 22 Dec 2020)
Non-Bank Financial Institutions Rating Criteria (pub. 01 Feb 2025) (including rating assumption sensitivity)
ADDITIONAL DISCLOSURES
Solicitation Status
Endorsement Policy
ENDORSEMENT STATUS
Krungthai XSpring Securities Company Limited -
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