Fitch Rates CIMB Thai Bank's MTN Programme at 'AA-(tha)'/'F1+(tha)'

The programme has a maximum issuance size of THB5.0 billion, and allows revolving issuances within the next two years. The notes under the programme could be denominated in Thai baht or foreign currencies. Proceeds will be used for the bank's general working-capital requirements.

The ratings on the programme apply only to senior unsecured issues under the programme. There is no assurance that notes issued in the future under the programme will be assigned a rating.

KEY RATING DRIVERS

CIMBT's MTN programme is rated at the same level as the bank's National Long-Term Rating of 'AA-(tha)' and National Short-Term Rating of 'F1+(tha)'. This is in line with Fitch's criteria, as the senior notes represent unsecured and unsubordinated obligations of the bank.

Fitch uses its institutional-support framework to rate CIMBT, as we believe its parent bank, Malaysia-based CIMB Bank Berhad (CIMB Bank), would provide extraordinary support, if needed. Fitch sees the Thai subsidiary as strategically important to the parent, which has a 94.8% stake in CIMBT, exercises management control and closely integrates the subsidiary within the group. The subsidiary also shares its parent's brand.

For more details on the rating drivers and sensitivities for CIMBT, please see the rating action commentary "Fitch Affirms CIMB Thai Bank at 'AA-(tha)'; Revises Outlook to Negative" dated 20 April 2020 at https://www.fitchratings.com/site/pr/10118593.

RATING SENSITIVITIES

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

The ratings on the programme are sensitive to changes in CIMBT's National Long- and Short-Term Ratings. An upgrade of CIMBT's National Long-Term Rating would lead to an upgrade of the MTN programme, but this is unlikely to occur over the near term given CIMBT's Negative Outlook. The National Short-Term Rating on the MTN programme is the highest rating on the national rating scale; and there is no upside.

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

Downgrades of CIMBT's National Long- and Short-Term Ratings would affect the rating on the MTN programme. However, a downgrade of CIMBT's National Short-Term Rating would only occur if its National Long-Term Rating were to be downgraded to below 'A(tha)'.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

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.

Additional information is available on www.fitchratings.com

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