OREANDA-NEWS. Fitch Ratings has confirmed United Overseas Bank (Thai) Public Company Limited's (UOBT; 'AAA(tha)'/Stable) planned issuance of senior unsecured debentures at the National Long-Term Rating of 'AAA(tha)'.

The debentures will be issued in tranches, with tenor of up to five years and issue size of up to THB10bn. The proceeds from the issue will be used for general corporate purposes and refinancing.

The rating was assigned on 29 February 2016 (see "Fitch Affirms 4 Thai Subsidiaries of Foreign Financial Institutions" on www.fitchratings.com).

KEY RATING DRIVERS
The debentures of UOBT are rated at the same level as UOBT's National Long-Term Rating in accordance with Fitch's criteria, as they represent unsecured and unsubordinated obligations of the issuer.

UOBT's National Long-Term Ratings reflect Fitch's view that the bank is a strategically important subsidiary of its Singaporean parent United Overseas Bank Limited (UOB; AA-/Stable). This is evident from UOB's near-full ownership in UOBT, full management control, name- and brand-sharing, strong levels of integration, and a history of operational and financial support.

RATING SENSITIVITIES
A downgrade in the National Long-Term Rating of UOBT would lead to a downgrade on its senior debt rating. This may, for example, arise from indications of a lower propensity of UOB to provide extraordinary support to UOBT, such as a material reduction in ownership. However, Fitch views this as unlikely in the medium term.

UOBT's National Long-Term Rating is at the highest on Thailand's National Rating scale, and hence there is no potential upside.

UOBT's other ratings are not affected, and are as follows:

- Long-Term Foreign Currency IDR at 'A-'; Outlook Stable
- Short-Term Foreign Currency IDR at 'F2'
- Viability Rating at 'bb+'
- Support Rating at '1'
- National Long-Term Rating at 'AAA(tha)'; Outlook Stable
- National Short-Term Rating at 'F1+(tha)'
- National Long-Term rating on outstanding senior unsecured debts at 'AAA(tha)'.