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Fitch Rates Bank of Ayudhya’s Senior Unsecured Bonds ‘AAA(tha)’

          Fitch Ratings-Bangkok-06 March 2019: Fitch Ratings (Thailand) has assigned Bank of Ayudhya Public Company Limited's (BAY, AAA(tha)/Stable) upcoming issue of senior unsecured bonds a National Long-Term Rating of 'AAA(tha)'. 
          The proposed bonds will have a tenor of up to three years. Proceeds will be used for refinancing and general corporate purposes.
          
          KEY RATING DRIVERS 
          The bonds are rated at the same level as BAY's National Long-Term Rating as they represent the bank's unsubordinated and unsecured obligations. 
          BAY's National Long-Term Rating reflects Fitch's view that it is a strategically important subsidiary of MUFG Bank, Ltd. (A/Stable/a), which owns 76.9% of the bank. BAY plays a key role in implementing the group's regional strategies for south-east Asia. 

          RATING SENSITIVITIES
          The rating on the proposed bonds is sensitive to any changes in BAY's National Long-Term Rating, which is at the top-end of the scale and therefore has no upside. 
          A downgrade of MUFG Bank's Long-Term Issuer Default Rating could lead to negative rating action on BAY, including action on the National Long-Term Rating. BAY's ratings could also face negative rating action if MUFG Bank shows a reduced propensity to support BAY. However, Fitch believes this is unlikely to occur in the medium term. 
          For full details on BAY's key rating drivers and sensitivities, see the previous rating action commentary, published 2 May 2018.