http://www.moodys.com/research/Moodys-announces-reviews-for-downgrade-of-three-banks-subdebt-ratings--PR_274101
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Rating Action: Moody's Affirms the A3 Ratings of Three Banks in Thailand
Singapore, June 03, 2013 -- Moody's Investors Service announced today that it has put on review for downgrade the bank subordinated debt (subdebt) ratings that have benefited from an uplift linked to Moody's prior assessment of systemic support in Thailand.
The affected banks are:
1.Bangkok Bank Limited (deposits Baa1 STA(m), BFSR C-/BCA baa2 stable),
2.KASIKORNBANK Public Company Limited (deposits Baa1 STA(m), BFSR D+/BCA baa3 stable),
and 3.Siam Commercial Bank Public Company Limited (deposits Baa1 STA(m), BFSR C-/BCA baa2 stable).
The list of the individual program and debt ratings being put under review is provided further below.
Moody's highlights that the reviews of the banks' subdebt ratings are not in any way related to any deterioration in the affected banks' fundamental credit quality.
The review takes place in the context of a methodology update that has changed the way Moody's looks at the probability of support, which has led to several subdebt ratings in multiple banking systems being reviewed simultaneously.
The revised methodology that underpins today's announcement was formally announced in a separate document on May 31 following a public comment period launched in early April 2013. Both documents can be found on www.moodys.com, and their titles are "Moody's Global Bank Rating Methodology (May 31, 2013) and "Moody's Proposed Approach for Rating Certain Bank Contingent Capital Securities and Update to Approach for Rating Bank Subordinated Debt" (April 10, 2013).
Moody's expects to conclude its review within the next three months.
Detailed Ratings Rationale
The methodology update and the related rating actions announced today are driven by the conclusion that government policy to deal with ailing banks has evolved globally -- albeit at different speeds and degrees across systems -- in a way that makes support for bank subdebt less probable than before.
"Government policy has evolved towards the adoption of "burden sharing" principles, and gradually away from the automatic bail out of all creditors over the last few years" says Stephen Long, Managing Director for Asia Pacific Financial Institutions at Moody's.
Moody's also highlights that the many examples of losses being imposed on subdebt holders in the context of bank resolutions in other regions have lowered the probability that Asian authorities would feel obliged to support subordinated debt due to concerns about the risk of contagion. There would be little stigma attached to involving subdebt in burden sharing given these prior examples and given that the global regulatory consensus increasingly sees this as best practice.
"The willingness of governments and regulators to apply burden sharing principles and their ability to do so without causing contagion have been demonstrated in several recent cases where losses were effectively imposed on creditors along the entire credit hierarchy in order to recapitalize banks" Long adds.
With respect to Asia and more particularly Thailand, Moody's says that regulators have been reluctant to explicitly endorse the burden sharing principles and adopt special resolution powers.
Nevertheless, Moody's says it is mindful that such a stance has emerged in the context of an absence of banking crises or bail-outs, and the politics of bank resolution could change materially in times of stress, and the region's regulators may then be more inclined to borrow tools deployed elsewhere.
Moody's explained that although the review for downgrade has nothing to do with any observable deterioration in the credit quality of the banks, it needs to assess whether the government's likely behavior in times of stress has changed compared to previous assumptions.
Moody's preliminary conclusion points to reasonable doubt over whether the status quo would survive test cases where governments provide significant financial support to banks, particularly in a systemic crisis that puts stress on the government's own balance sheet. The rating agency has therefore placed the banks' subdebt ratings under review for downgrade.
A Special Comment providing an extensive assessment of the factors that have led to the review and which will guide Moody's during the review period will be published separately today. The publication will be entitled "Moody's Reconsideration of Support for the Subordinated Debt of Asia-Pacific Banks".
The Thai banks whose subdebt ratings currently benefit from a support uplift and which are affected by today's rating action are:
Bangkok Bank Public Company Ltd. (Hong Kong) -- Long-term global foreign currency subordinated debt rating of Baa1, placed on review for possible downgrade
KASIKORNBANK Public Co. Ltd (Hong Kong) -- Long-term global foreign currency subordinated debt rating of Baa1, placed on review for possible downgrade
Siam Commercial Bank Public Company Limited -- Long-term global foreign currency subordinated debt program rating of (P)Baa1, placed on review for possible downgrade
Siam Commercial Bank Public Co. (Cayman) -- Long-term global foreign currency subordinated debt program rating of (P)Baa1, placed on review for possible downgrade
Siam Commercial Bank Public Co. (Hong Kong) -- Long-term global foreign currency subordinated debt program rating of (P)Baa1, placed on review for possible downgrade
The principal methodology used in this rating was Moody's Global Banks Rating Methodology published on May 31, 2013. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.
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เมื่อนายกรัฐมนตรี ยิ่งลักษณ์ ชินวัตร กำลังทำพิธีสะเดาะเคราห์ และเล่นน้ำทะเล
มูดี้ส์ก็ลดเครดิตประเทศไทยในเวลาเดียวกัน ประเดิมส่งผลสะเทือนถึง 3 ธนาคารยักษ์ใหญ่ของไทย ซึ่งได้แก่ ธ.กรุงเทพ, ธ. กสิกรไทย และ ธ. ไทยพาณิชย์
สำหรับรัฐมนตรีคลัง "กิตติรัตน์ ณ ระนอง" นั้น ข่าวว่าจนป่านนี้ก็ยังอ้าปากพูดอะไรไม่ออก อ้างว่าไม่มีหน้าที่ชี้แจง
อนิจจาประเทศไทย
คุณโบกกรักคาฟ หาเจออ่ะยังคาฟ......ผมเอามาฝากอ่ะคาฟ....มาเร้วววว.....
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Rating Action: Moody's Affirms the A3 Ratings of Three Banks in Thailand
Singapore, June 03, 2013 -- Moody's Investors Service announced today that it has put on review for downgrade the bank subordinated debt (subdebt) ratings that have benefited from an uplift linked to Moody's prior assessment of systemic support in Thailand.
The affected banks are:
1.Bangkok Bank Limited (deposits Baa1 STA(m), BFSR C-/BCA baa2 stable),
2.KASIKORNBANK Public Company Limited (deposits Baa1 STA(m), BFSR D+/BCA baa3 stable),
and 3.Siam Commercial Bank Public Company Limited (deposits Baa1 STA(m), BFSR C-/BCA baa2 stable).
The list of the individual program and debt ratings being put under review is provided further below.
Moody's highlights that the reviews of the banks' subdebt ratings are not in any way related to any deterioration in the affected banks' fundamental credit quality.
The review takes place in the context of a methodology update that has changed the way Moody's looks at the probability of support, which has led to several subdebt ratings in multiple banking systems being reviewed simultaneously.
The revised methodology that underpins today's announcement was formally announced in a separate document on May 31 following a public comment period launched in early April 2013. Both documents can be found on www.moodys.com, and their titles are "Moody's Global Bank Rating Methodology (May 31, 2013) and "Moody's Proposed Approach for Rating Certain Bank Contingent Capital Securities and Update to Approach for Rating Bank Subordinated Debt" (April 10, 2013).
Moody's expects to conclude its review within the next three months.
Detailed Ratings Rationale
The methodology update and the related rating actions announced today are driven by the conclusion that government policy to deal with ailing banks has evolved globally -- albeit at different speeds and degrees across systems -- in a way that makes support for bank subdebt less probable than before.
"Government policy has evolved towards the adoption of "burden sharing" principles, and gradually away from the automatic bail out of all creditors over the last few years" says Stephen Long, Managing Director for Asia Pacific Financial Institutions at Moody's.
Moody's also highlights that the many examples of losses being imposed on subdebt holders in the context of bank resolutions in other regions have lowered the probability that Asian authorities would feel obliged to support subordinated debt due to concerns about the risk of contagion. There would be little stigma attached to involving subdebt in burden sharing given these prior examples and given that the global regulatory consensus increasingly sees this as best practice.
"The willingness of governments and regulators to apply burden sharing principles and their ability to do so without causing contagion have been demonstrated in several recent cases where losses were effectively imposed on creditors along the entire credit hierarchy in order to recapitalize banks" Long adds.
With respect to Asia and more particularly Thailand, Moody's says that regulators have been reluctant to explicitly endorse the burden sharing principles and adopt special resolution powers.
Nevertheless, Moody's says it is mindful that such a stance has emerged in the context of an absence of banking crises or bail-outs, and the politics of bank resolution could change materially in times of stress, and the region's regulators may then be more inclined to borrow tools deployed elsewhere.
Moody's explained that although the review for downgrade has nothing to do with any observable deterioration in the credit quality of the banks, it needs to assess whether the government's likely behavior in times of stress has changed compared to previous assumptions.
Moody's preliminary conclusion points to reasonable doubt over whether the status quo would survive test cases where governments provide significant financial support to banks, particularly in a systemic crisis that puts stress on the government's own balance sheet. The rating agency has therefore placed the banks' subdebt ratings under review for downgrade.
A Special Comment providing an extensive assessment of the factors that have led to the review and which will guide Moody's during the review period will be published separately today. The publication will be entitled "Moody's Reconsideration of Support for the Subordinated Debt of Asia-Pacific Banks".
The Thai banks whose subdebt ratings currently benefit from a support uplift and which are affected by today's rating action are:
Bangkok Bank Public Company Ltd. (Hong Kong) -- Long-term global foreign currency subordinated debt rating of Baa1, placed on review for possible downgrade
KASIKORNBANK Public Co. Ltd (Hong Kong) -- Long-term global foreign currency subordinated debt rating of Baa1, placed on review for possible downgrade
Siam Commercial Bank Public Company Limited -- Long-term global foreign currency subordinated debt program rating of (P)Baa1, placed on review for possible downgrade
Siam Commercial Bank Public Co. (Cayman) -- Long-term global foreign currency subordinated debt program rating of (P)Baa1, placed on review for possible downgrade
Siam Commercial Bank Public Co. (Hong Kong) -- Long-term global foreign currency subordinated debt program rating of (P)Baa1, placed on review for possible downgrade
The principal methodology used in this rating was Moody's Global Banks Rating Methodology published on May 31, 2013. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.
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เมื่อนายกรัฐมนตรี ยิ่งลักษณ์ ชินวัตร กำลังทำพิธีสะเดาะเคราห์ และเล่นน้ำทะเล
มูดี้ส์ก็ลดเครดิตประเทศไทยในเวลาเดียวกัน ประเดิมส่งผลสะเทือนถึง 3 ธนาคารยักษ์ใหญ่ของไทย ซึ่งได้แก่ ธ.กรุงเทพ, ธ. กสิกรไทย และ ธ. ไทยพาณิชย์
สำหรับรัฐมนตรีคลัง "กิตติรัตน์ ณ ระนอง" นั้น ข่าวว่าจนป่านนี้ก็ยังอ้าปากพูดอะไรไม่ออก อ้างว่าไม่มีหน้าที่ชี้แจง
อนิจจาประเทศไทย