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

          The bonds will have a tenor of up to three years and the total issue size will be up to THB15 billion. Proceeds of the issue will be used for refinancing and/or 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 unsubordinated and unsecured obligations of the bank. 

          BAY's National Long-Term Rating is driven by Fitch's view that its parent, the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU; A/Stable), would provide extraordinary support if needed. BTMU controls BAY via its 76.9% shareholding and BAY is a key part of the parent's strategy for south-east Asia. 

          RATING SENSITIVITIES
          The rating on the bonds is sensitive to any changes in BAY's National Long-Term Rating. The National Long-Term Rating of BAY is at the top end of the scale and no upside is possible. 

          A downgrade of the Long-Term Issuer Default Rating of BTMU could lead to negative rating action on BAY's National Long-Term Rating. 

          BAY's National Long-Term Rating could also be hurt if BTMU shows a reduced propensity to support its Thai subsidiary - which may, for example, be seen via a significantly reduced shareholding, or a weakening in integration and linkages with the parent. However, Fitch views this as unlikely in the medium term.