Fitch Rates Siam Commercial Bank's Senior Notes at 'BBB+(EXP)'

           Fitch Ratings has assigned The Siam Commercial Bank Public Company Limited's (SCB; BBB+/Stable/bbb+) proposed US-dollar denominated senior unsecured notes an expected 'BBB+(EXP)' rating. The notes will be issued under the bank's USD3.5 billion medium-term note programme. 
          The proposed tenure for the notes will be up to 5.5 years. SCB plans to use issuance proceeds for general corporate and funding purposes. 
          The final rating is subject to the receipt of final documentation conforming to information already received.

          KEY RATING DRIVERS 
          The proposed senior notes are rated at the same level as SCB's Long-Term Foreign-Currency Issuer Default Rating (IDR), as they will represent its unsecured and unsubordinated obligations. SCB's IDR is driven by its standalone credit profile and reflects its strong domestic franchise, large client base and solid financial performance record. 

          RATING SENSITIVITIES
          The rating of the proposed 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 of 'bbb+'. A significant and sustained financial deterioration, beyond Fitch's expectations, in asset quality or profitability, without the maintenance of adequate buffers, could lead to negative rating action. 
          There is unlikely to be any rating upside, as SCB's IDR is already at the same level as the Thai sovereign. For further details on SCB's key rating drivers and rating sensitivities, refer to the rating action commentary "Fitch Affirms Thailand's Four Largest Commercial Banks" dated 9 May 2Siam Commercial BankFitch Ratings7 and available at www.fitchratings.com