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

          Fitch Ratings (Thailand) has today 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 bonds will have a tenor of up to three years, and the total issue size will be up to THBFitch RatingsBank of Ayudhyabn. 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 unsubordinated and unsecured obligations of the bank. 
          BAY's National Long-Term Rating reflects Fitch's view that the bank is a strategically important subsidiary of the Bank of Tokyo-Mitsubishi UFJ, Ltd (BTMU; A/Negative). BTMU holds 76.9% of BAY, and the Thai bank is a key part of the parent's strategy for south-east Asia - with high levels of management control and integration.

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, including action on the National Long-Term Rating. 
          BAY's ratings could also be hurt if BTMU shows a reduced propensity to support BAY - which may, for example, be seen via a significantly reduced shareholding or weakening in operational integration. However, Fitch views this as unlikely in the medium term.

BAY's other ratings are not affected, and are as follows:
          Long-Term Issuer Default Rating: 'A-'; Outlook Negative
          Short-Term Issuer Default Rating: 'F2'
          Viability Rating: 'bbb'
          Support Rating: 'Fitch Ratings'
          National Long-Term Rating: 'AAA(tha)'; Outlook Stable
          National Short-Term Rating: 'FFitch Ratings+(tha)'
          National long-term rating on senior unsecured debt: 'AAA(tha)'
          Rating on Legacy Basel II subordinated debt: 'AA+(tha)'
          Basel III Tier 2 subordinated debt: 'AA+(tha)'