Fitch Rates United Overseas Bank (Thai)'s Senior Bonds 'AAA(tha)'

KEY RATING DRIVERS
The bonds are rated at the same level as UOBT's National Long-Term Rating as they represent the bank's unsubordinated and unsecured obligations.

UOBT's ratings are driven by Fitch's view that the bank is a strategically important subsidiary of Singapore-based United Overseas Bank Limited (UOB; AA-/Stable). UOBT plays an important role in expanding the group's presence in south-east Asia. The parent owns 99.7% of UOBT, and there are clear branding linkages, management control and operational integration between the two entities.

RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive rating action/upgrade:

There is no upside to the rating, which is at the top end of the scale.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

UOB's ability to support UOBT is indicated by its Long-Term Issuer Default Rating (IDR) of 'AA-'/Stable. The parent's credit profile would have to decline by multiple notches before having any impact on UOBT's National Long-Term Rating.

There may be negative rating action if the parent's propensity to support UOBT declines, including a drop in UOB's shareholding to below 75%, combined with substantially reduced management control and integration. However, Fitch does not expect these changes in support propensity to occur in the medium term.

For details on UOBT's key rating drivers and sensitivities, please refer to Fitch Affirms UOB Thai at 'A-' and 'AAA(tha)'; Outlook Stable, dated 7 May 2021.

DATE OF RELEVANT COMMITTEE
06 May 2021

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
UOBT's IDRs, Support Rating and National Ratings are driven by the ratings of its parent, UOB.

ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

Additional information is available on www.fitchratings.com

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