OREANDA-NEWS. Fitch Ratings (Thailand) Limited has assigned a National Long-Term Rating of 'AAA(tha)' to ICBC (Thai) Leasing Company Limited's (ICBCTL: AAA(tha)/Stable/F1+(tha)) upcoming senior unsecured debentures of up to THB5bn. The debentures would be offered in tranches with tenors of up to 12 years.

At the same time, Fitch has assigned a National Short-Term Rating of 'F1+(tha)' to ICBCTL's short-term senior unsecured debenture programme of up to THB20bn on a revolving basis for the period 8 April 2016 to 7 April 2017. Each issuance under the programme will have a maturity of no more than 270 days.

The proceeds will be used for refinancing and/or for funding ICBCTL's general operations.

KEY RATING DRIVERS
ICBCTL's senior debentures and short-term debenture programme are rated at the same level as the company's National Long-Term Rating and National Short-Term Rating of 'AAA(tha)' and 'F1+(tha)', respectively. This is in accordance with Fitch's criteria, as they represent unsecured and unsubordinated obligations of the issuer.

The National Ratings of ICBCTL are equalised with that of its parent, Industrial and Commercial Bank of China (Thai) Public Company Limited (ICBCT; AAA(tha)/Stable/F1+(tha)). This reflects Fitch's view that ICBCTL is a core subsidiary of the bank and that there is an extremely high probability of extraordinary support, if required, from ICBCT. ICBCTL is a key part of the bank's strategy and has an important role in supporting ICBCT's retail banking business. ICBCTL's loans comprised around 28% of ICBCT's consolidated loans and 42% of consolidated revenue in 2015, based on Fitch estimates.

RATING SENSITIVITIES
The National Ratings of ICBCTL's long-term senior unsecured debenture and short-term debenture programme are currently at the highest on Thailand's National Rating scale; hence, no upside is possible. A downgrade of the National Ratings of ICBCTL could have a similar effect on the National Ratings on its senior debts.

Any changes in the perceived propensity of ICBCT to support ICBCTL could lead to rating shifts on the National Ratings on both ICBCTL and its senior debt ratings. For example, a large divestment of any shareholdings or a clear lack of financial commitment may lead to downgrades. However, Fitch views these as unlikely to occur in the near term.

For more details on the rating drivers and sensitivities for ICBCTL and ICBCT, please see the rating action commentary "Fitch Affirms 5 Thai Subsidiaries of Foreign Financial Institutions" dated 27 October 2015 and available at www.fitchratings.com.

The other ratings of ICBCTL are unaffected by this action, and are as follows:
National Long-Term Rating at 'AAA(tha)'; Stable Outlook
National Short-Term Rating at 'F1+(tha)'
National Long-Term Rating on bonds guaranteed by ICBCT at 'AAA(tha)'; Stable Outlook
National Long-Term Rating on senior unsecured bonds (outstanding notes) at 'AAA(tha)'.