Fitch assigns Muang Thai securities BBB

Fitch Ratings said it assigned a BBB rating to Muang Thai Life Assurance PCL’s planned regulatory compliant tier 2 subordinated securities. The agency simultaneously published MTL's long-term issuer default rating at BBB+ with a stable outlook.

The subordinated securities represent MTL's direct, unsecured and subordinated obligations. The securities have a maturity period of 15.25 years with an early redemption option in the fifth year of issue, but no step-up coupon feature.

“The proposed securities are rated one notch below MTL's IDR, to reflect Fitch's assumption of ‘below-average’ recovery prospects in the event of a default, given the level of subordination. The securities rank senior to junior obligations, including preference shares and tier 1 securities, but rank behind the claims of all senior creditors,” the agency said in a press release.

The proceeds will be used for general corporate and capital adequacy purposes.

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