OREANDA-NEWS. November 30, 2015.  Fitch Ratings (Thailand) has assigned Bangkok Commercial Asset Management Company Limited's (BAM; AA-(tha)/Negative) issuance of Thai baht senior unsecured notes a rating of 'AA-(tha)'. The notes will have maturities of two and/or three years.

KEY RATING DRIVERS

The notes are rated at the same level as BAM's National Long-Term Rating, as they represent unsubordinated and unsecured obligations of the company.

BAM's National Ratings are based on sovereign support considerations, due to its status as a state enterprise (100% owned by a unit of the central bank) as well as its important role in the financial system as the largest player in Thailand's impaired asset management sector.

The Negative Outlook is driven by Fitch's view that the state may have a reduced propensity to extend extraordinary support to BAM over the medium term, as it is unclear whether the central bank views BAM as a core strategic shareholding.

RATING SENSITIVITIES

Any changes in BAM's National Long-Term Rating would have a similar impact on the issue rating.

A clear indication from the state of the importance of BAM's role in its plans for the financial sector, or a long-term commitment to maintain BAM's status as a wholly owned state enterprise, would lead to a revision of the Outlook to Stable and potentially a re-assessment of the National Long-Term Rating.

A significant reduction in the propensity of the state to support BAM, such as through a large reduction in its shareholding or reduced regulatory advantages, could lead to negative rating action. In particular, a reduction of the government's stake to below 50% could lead to a multiple-notch downgrade of the National Long-Term Rating, though the final rating would also depend on the ultimate financial profile and the continuation of state linkages.

For further details, please refer to the press release "Fitch Affirms Bangkok Commercial Asset Management" dated 10 September 2015