Fitch Affirms PAMCO's THB Guaranteed MTN Programme at 'AA+(tha)'/'F1+(tha)'

PAMCO is a wholly owned subsidiary of TMBThanachart Bank Public Company Limited (TTB, AA+(tha)/Stable/F1+(tha)). It was established in 2018 and its main business is managing non-performing loans and non-performing assets.

KEY RATING DRIVERS
The rating on PAMCO's guaranteed MTN programme is based entirely on irrevocable and unconditional guarantees provided by TTB. The programme ratings are equalised to those of TTB, as the guaranteed notes under the programme represent TTB's unsecured and senior obligations and rank pari passu with its other senior obligations.

TTB's ratings are based on its Government Support Rating of 'bbb', which reflects our view of the government's ability and propensity to provide extraordinary support to TTB, if needed. This view stems from TTB's status as one of Thailand's six domestic systemically important banks, due to its significant scale - with a domestic deposit market share of 8% - and financial system linkages. See Fitch Affirms TMBThanachart Bank at 'BBB' and 'AA+(tha)'; Outlook Stable for detail on TTB's key rating drivers and sensitivities.

RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
The MTN programme ratings are sensitive to changes in TTB's National Long- and Short-Term Ratings. Any downgrade of TTB's national ratings would lead to similar rating action on PAMCO's MTN programme.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
An upgrade of TTB's National Long-Term Rating would lead to similar rating action on PAMCO's guaranteed MTN programme. However, there is no upside to the National Short-Term Rating, as it is already at the highest level on the rating scale.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
The national ratings of the guaranteed MTN programme are linked to TTB's national ratings.

• ข่าวThanachart Bank
• ข่าวFitch Ratings
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