S&P to monitor United Overseas Bank

Standard & Poor's said it will continue to monitor developments associated with the recent announcement by Singapore's United Overseas Bank Ltd. (A+/positive/A-1) on its proposal to merge its two Thai subsidiaries, Bank of Asia Public Co. Ltd. (BB+/positive/B) and UOB Radanasin Bank Public Co. Ltd.

Under the proposed merger plan, which is subject to approvals from the Thai regulatory authorities, Bank of Asia will be the surviving bank after the merger and that UOB Radanasin will be delisted from the Stock Exchange of Thailand and eventually liquidated.

As details of the proposed merger and necessary approvals are received, S&P said it will review the implications for Bank of Asia's ratings - in particular, parent UOB's future strategic thrust and degree of financial commitment toward its Thai operations that would further determine Bank of Asia's overall importance and status within the larger UOB group.

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