Fitch cuts ICBC (Thai) tier 2 notes

Fitch Ratings said it downgraded Industrial and Commercial Bank of China (Thai) PCL’s Basel III tier 2 subordinated Thai baht-denominated notes to AA(tha), from AA+(tha), which is two notches below the support-driven national long-term rating; the anchor rating for the notes.

“The downgrade of ICBCT's Basel III tier 2 subordinated Thai baht-denominated notes is consistent with Fitch's baseline notching approach for subordinated debt in its revised bank rating criteria and the rating action on the subordinated debt of other Thai-bank issuers. We believe the notes may have a poorer recovery rate than senior unsecured instruments if the issuer was to trigger the instrument's non-viability clause,” Fitch said in a press release.

Fitch affirmed the national long-term ratings for the bank and ICBC (Thai) Leasing Co. Ltd. at AAA(tha) with a stable outlook.

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