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Fitch Rates Siam Commercial Bank’s USD Senior Notes Final ‘BBB+’

          Fitch Ratings has assigned a final rating of 'BBB+' to The Siam Commercial Bank Public Company Limited's (SCB; BBB+/Stable/bbb+) USD500 million senior unsecured notes maturing in February 2024 and USD500 million senior unsecured notes maturing in February 2029. The notes are issued by SCB's Cayman Islands branch under the bank's USD3.5 billion medium-term note (MTN) programme. 
          The final ratings are in line with the expected rating assigned on 27 January 2019 and follow the receipt of documents conforming to information previously received.

          KEY RATING DRIVERS 
          The senior notes are rated at the same level as SCB's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'BBB+' as they represent the bank's unsecured and unsubordinated obligations. 

          RATING SENSITIVITIES
          The rating of the senior unsecured notes would be directly affected by any changes in SCB's Long-Term Foreign-Currency IDR, which in turn is driven by its Viability Rating (VR) of 'bbb+'. 

          There is unlikely to be upside to SCB's VR in the near term as it is already at the same level as the Thai sovereign's Long-Term Foreign-Currency IDR (BBB+/Stable), and the bank has a substantial exposure to sovereign bonds. A significant and sustained deterioration beyond Fitch's expectations in either asset quality or profitability (including a much higher risk appetite, which could raise the prospects for future deterioration) without adequate buffers in terms of loan-loss reserves and capitalisation could lead to a negative rating action on the VR.
          For more details on the rating drivers and sensitivities for SCB, please see the rating action commentary, dated 2 May 2018.