Fitch: Bank of Asia on negative watch

Fitch Ratings said it is maintaining Bank of Asia's ratings of long-term BBB, short-term F3, individual D and support 2 on Rating Watch negative. At the same time, Fitch Ratings (Thailand) is keeping the bank's national long-term AA+(tha), short-term F1+(tha) and subordinated debt AA(tha) ratings on Rating Watch negative, pending the completion of the proposed sale of ABN Amro's 81% stake in BOA.

This follows the announcement Sunday that ABN Amro has entered into an exclusive sale and purchase agreement with Singapore's United Overseas Bank to finalize the sale and purchase agreement. If successfully completed, the impact on BOA's ratings should be neutral, as UOB is similarly rated to ABN Amro at AA- on the international rating scale.

However, before resolving the watch status, Fitch said it will undertake a review of the extent of UOB's solvency, liquidity and operational support for BOA.

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