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Fitch downgrades rating of CIMB Thai Bank

Fitch Ratings downgraded the national long-term rating of CIMB Thai Bank PCL to AA-(tha) from AA(tha), with a stable outlook.

The rating agency also affirmed the bank's national short-term rating at F1+(tha), it said Aug. 14.

In addition, Fitch also maintained the Rating Watch Negative on CGS-CIMB Securities (Thailand) Co. Ltd.'s national long- and short-term ratings of AA-(tha) and F1+(tha), respectively, as weakening support from parent CIMB Group Holdings Bhd. may be offset by support from China Galaxy Securities Co. Ltd.

The ratings downgrade is a result of Fitch's revised view of Malaysia-based CIMB Bank Bhd., which are aligned with its consolidated view of CIMB Group, due to their integrated management and strategy.

The ratings action on the Thai lender reflects the expectation that key financial indicators for CIMB Bank are not likely to approach levels commensurate with the rating agency's previous view. Fitch believes there is a high probability that CIMB Thai Bank will get extraordinary support from the Malaysian parent in times of need.

Fitch recently also lowered its ratings on Indonesia-based CIMB Group unit PT Bank CIMB Niaga Tbk.