Fitch Ratings affirmed TMB Bank PCL's BBB- long-term issuer default rating and AA-(tha) national long-term rating and revised outlook to positive from stable.
The rating agency said Sept. 3 that it placed the Thai lender's support rating and support rating floor on Rating Watch Positive.
The affirmation and outlook revision came after the bank signed a deal in early August to merge with local peer Thanachart Bank PCL to create the country's sixth-largest commercial lender with approximately 1.9 trillion baht of assets. The proposed merger is expected to be completed in December.
Fitch said the positive outlook reflects its expectation that the merger will lead to an improved standalone credit profile and company profile for TMB Bank over the next 18 months to 24 months. It added there are limited risks associated with the merger, as the two banks have similar financial strengths and somewhat complementary business operations, including target markets.
The agency also expect the merger to have a positive impact on TMB Bank's other rating factors, such as risk appetite, asset quality, and earnings and profitability.
As of Sept. 2, US$1 was equivalent to 30.63 Thai baht.
