Fitch Ratings (Thailand) has assigned Krungthai XSpring Securities Company Limited's (KTX, AA-(tha)/Stable) senior unsecured notes a National Long-Term Rating of 'AA-(tha)'.
The notes will have a tenor of one and a half years. Proceeds will be used for working capital.
Key Rating Drivers
The senior unsecured notes are rated at the same level as KTX's National Long-Term Rating, as they represent unsubordinated and unsecured obligations of the company and rank equally with its other similar obligations.
KTX's National Ratings reflect Fitch's expectation of a high probability of extraordinary support from the major shareholder, Krung Thai Bank Public Company Limited (KTB, BBB+/AAA(tha)/Stable), in the event of stress. That said, KTX's rating is three notches below KTB's on the National Rating scale, reflecting the presence of other significant shareholders that could lower KTB's management integration and control of KTX, and weigh on the timeliness of support.
For further details of KTX's rating drivers and sensitivities, please see Fitch Affirms Krungthai XSpring at 'AA(tha)'; Outlook Stable, published on 27 February 2024.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
KTX's senior unsecured debt rating would be downgraded if its National Long-Term Rating were to be downgraded.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
An upgrade of KTX's National Long-Term Rating would result in similar action on its senior debt rating.
Date of Relevant Committee
23 February 2024
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 the local-currency credit profile of KTB, as denoted by the shareholder bank's National Long-Term Rating.
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