Moody's moves UOB Thai view to negative

Moody's Investors Service said it changed the outlook to negative from stable and affirmed the A3 foreign currency deposit rating and all other ratings of United Overseas Bank (Thai) PCL following the announced acquisition of assets from Citigroup Inc.

“The negative outlook is driven by the material decrease of UOBT's core capital ratio after the acquisition is completed in 2022. The bank's tangible common equity (TCE) to adjusted risk weighted assets ratio (TCE ratio) will decline materially to below 10%, from a strong level of 14.2% as of 30 June 2021 because of goodwill and additional assets, before rebounding to around 11% over the course of three years,” the agency said in a press release.

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