S&P Global Ratings changed the outlooks on Bangkok Bank PCL and Bank of Ayudhya PCL to positive from stable after taking a similar rating action on Thailand's sovereign rating.
The rating agency said Dec. 11 that it affirmed the two banks' BBB+ long-term and A-2 short-term issuer credit ratings.
S&P said the outlook revision reflects the expectation that the two Thai lenders will likely benefit from enhanced external support if Thailand's sovereign rating is raised over the next 12 to 24 months.
The positive outlook on Bangkok Bank reflects the view that it will likely benefit from the Thai sovereign's enhanced capability to support banks in the next 12 to 24 months, while the similar outlook on Bank of Ayudhya reflects the expectation that it will remain at least a highly strategic subsidiary of Mitsubishi UFJ Financial Group Inc. over the same period. The ratings on Bank of Ayudhya also underscore the lender's status as a highly strategic unit of the Japanese group.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings.The original S&P Global Ratings document referred to in this news brief can be found here.