Fitch Ratings (Thailand) has affirmed ICBC (Thai) Leasing Company Limited’s (ICBCTL) National Long-Term Rating at ‘AAA(tha)’ and National Short-Term Rating at ‘F1+(tha)’. The Outlook is Stable.
Key Rating Drivers
Shareholder Support Drives Ratings: ICBCTL’s National Ratings reflect our expectation of extraordinary support from its direct parent, Industrial and Commercial Bank of China (Thai) Public Company Limited (ICBCT; AAA(tha)/Stable), as well as from the ultimate parent bank, Industrial and Commercial Bank of China Limited (ICBC; A/Stable).
The National Ratings also take into consideration ICBCTL’s support-driven credit profile relative to that of other entities within Fitch’s Thai national rating universe. The ‘AAA(tha)’ rating reflects the lowest expectation of default risk compared with other issuers in Thailand, based on the parent’s strong ability and propensity to provide support.
Core Subsidiary to Parent: ICBCTL’s ratings are equalised with those of its immediate parent, based on Fitch’s belief in the subsidiary’s integral role and importance to ICBCT. The company’s products are a key part of the parent bank’s consumer banking business, and accounted for 36% of the parent’s consolidated loans as of end-2024.
High Parent Support Ability: ICBCT’s ability to support ICBCTL is underpinned by the bank’s support-driven ratings, which are driven by our belief of a very high likelihood of extraordinary support from ICBC – a major, systemically-important state bank in China. ICBCTL’s balance sheet is relatively large compared with ICBCT, but this should not pose a material impediment to parental support as both entities are small relative to ICBC, the ultimate support provider.
For more information on ICBCT’s Key Rating Drivers, see “Fitch Affirms ICBC Thai at ‘AAA(tha)’; Outlook Stable”, published on 15 August 2025.
Close Integration with ICBCT: Fitch considers ICBCTL’s close integration with ICBCT to be due to full ownership and substantial management control. ICBCTL is part of ICBCT’s regulatory solo consolidation, which means that there are no restrictions on intra-group lending and that it is very closely linked to the bank in terms of shared governance, risk management, and a common operational framework. There is also strong oversight from the parent, and close strategic alignment within the group.
High Reputational Links: ICBCTL and ICBCT share a common name and branding, highlighting their close association for the banks’ clients. This creates strong reputational links, meaning any default or significant adverse event at ICBCTL would pose immense reputational risk for ICBCT and could damage its local franchise. As such, we expect that the parent has a very strong incentive to provide timely support to its subsidiary.
Challenging Operating Environment: The company’s pre-tax return on average assets has declined in recent years in line with weakness in the Thai auto-leasing segment. The loss in 2024 was due primarily to a one-off extraordinary loss from foreclosed assets. Nevertheless, stricter underwriting standards and a high loan-loss coverage of 211% at end-2024 should provide some buffers against future losses. We expect that the near-term pressures on profit will not have a significant impact on the prospects for shareholder support for ICBCTL.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
ICBCTL’s ratings are sensitive to changes in ICBCT’s perceived ability and propensity to support the subsidiary. Any downgrade of ICBCT’s National Ratings would signal a reduced ability to provide support, and be likely to result in similar rating action on ICBCTL. In addition, regulatory developments that limit the parent bank’s ability to extend support could prompt a reassessment of the support-driven rating. Any assessment would also take into account ICBCTL’s credit profile relative to other entities within Thailand’s national rating universe.
A significant reduction in ICBCT’s propensity to support would also exert downward pressure on ICBCTL’s ratings. This could occur if ICBCT were to decrease its ownership in ICBCTL to below 75%, accompanied by reduced management control and integration. Nevertheless, Fitch does not anticipate any change in ICBCT’s propensity to support ICBCTL in the near to medium term.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
The ratings are already at the highest level on the National Rating scale, and hence there is no room for further upgrades.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
ICBCTL’s senior unsecured notes are rated ‘AAA(tha)’ and ‘F1+(tha)’, the same as the company’s National Long- and Short-Term Ratings, as the instruments represent its unsecured and unsubordinated obligations and rank equally with other similar obligations.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
ICBCTL’s senior unsecured debt ratings would move in tandem with its National Long- and Short-Term Ratings.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
Public Ratings with Credit Linkage to other ratings
ICBCTL’s ratings are linked to ICBCT’s ratings.
Additional information is available on www.fitchratings.com