Thailand Financial News

Moody’s Investors Service announced today that it has upgraded the ratings of seventeen government-related financial institutions following a review prompted by the implementation in August of a revised rating methodology for the sector.
The revised methodology relies on a country’s local currency deposit ceiling as a measure of its ability to rescue non-bank financial institutions under its joint-default analysis (JDA) framework.

Previously, the government’s bond rating fulfilled this role, as it continues to do so for non-financial government-related entities. As a result of the change in rating methodology, 26 government-related non-bank financial institutions were put on review for upgrade in August. Today’s action concludes that review for all but one issuer. A related press release was issued earlier today covering Japanese government-related institutions. For further details, see “Revised Methodology for Non-Bank Financial Institutions” (August 2006), available on moodys.com. The affected issuers, their respective rating changes and JDA inputs include: Banco Nacional de Desenvolvimento Economico e Social (Brazil) LT Senior Unsecured (foreign currency) — Baa3/stable from Ba1/under review for upgrade LT Bank Deposits (foreign currency) — Ba3/stable (unchanged) LT Issuer Rating (domestic currency) — A1/stable from A3/under review for upgrade ST Bank Deposits (foreign currency) — NP (unchanged) ST Issuer Rating (domestic currency) — P-1 from P-2 Baseline Credit Assessment: 12 Support: High Brazil’s LCDC: A1 Croatian Bank for Reconstruction and Development (Croatia) LT Issuer Rating (foreign currency) — A1/stable from Baa1/under review for upgrade Backed Senior Unsecured (foreign currency) — A1/stable from Baa1/under review for upgrade Backed Senior Unsecured MTN (foreign currency) — A1/stable from Baa1/under review for upgrade Baseline Credit Assessment: 11 Support: High Croatia’s LCDC: Aa1 Czech Export Bank, a.s. (Czech Republic) LT Issuer Rating (foreign currency) — Aa1/positive from A1/under review for upgrade ST Issuer Rating (foreign currency) — P-1 (unchanged) Backed Senior Unsecured (foreign currency) — Aa1/positive from A1/under review for upgrade Baseline Credit Assessment: 5-7 Support: High Czech Republic’s LCDC: Aaa Hong Kong Mortgage Corporation Ltd. (Hong Kong) Senior Unsecured (domestic currency) — Aaa/stable from Aa3/under review for upgrade Senior Unsecured MTN (domestic currency) — Aaa/stable from Aa3/under review for upgrade LT Issuer Rating (domestic currency) — Aaa/stable from Aa3/under review for upgrade LT Issuer Rating (foreign currency) — Aa1/positive from Aa3/under review for upgrade ST Issuer Rating (domestic currency) — P-1 (unchanged) ST Issuer Rating (foreign currency) — P-1 (unchanged) Baseline Credit Assessment: 6 Support: High Hong Kong’s LCDC: Aaa Hungarian Development Bank Ltd (Hungary) Senior Unsecured (domestic currency) — Aaa/stable from A1/under review for upgrade Senior Unsecured (foreign currency) — Aa1/stable from A1/under review for upgrade LT Bank Deposits (foreign currency) — A1/under review for downgrade (unchanged) ST Bank Deposits (foreign currency) — P-1 (unchanged) Backed Senior Unsecured (foreign currency) — Aa1/stable from A1/under review for upgrade Baseline Credit Assessment: 11 Support: High Hungary’s LCDC: Aaa Cassa Depositi e Prestiti S.p.A. (Italy) Senior Unsecured (domestic currency) — Aa2/stable changed from Aa2/under review for upgrade Senior Unsecured MTN (domestic currency) — Aa2/stable changed from Aa2/under review for upgrade Issuer Rating (foreign currency) — Aa2/stable changed from Aa2/under review for upgrade BCA: 4 Support: Medium Italy’s LCDC: Aa Sace S.p.A. (Italy) Insurance Financial Strength (foreign currency) — Aa2/stable changed from Aa2/under review for upgrade Baseline Credit Assessment: 2-4 Support: Low Italy’s LCDC: Aaa Development Bank of Kazakhstan (Kazakhstan) Senior Unsecured (foreign currency) — A2/stable from Baa1/under review for upgrade Senior Unsecured MTN (foreign currency) — A2/stable from Baa1/under review for upgrade LT Issuer Rating (foreign currency) — A2/stable from Baa1/under review for upgrade Baseline Credit Assessment: 11-13 Support: High Kazakhstan’s LCDC: A2 Export-Import Bank of Korea (Korea) Senior Unsecured (foreign currency) — Aa3/stable from A3/under review for upgrade Senior Unsecured MTN (foreign currency) — Aa3/stable from A3/under review for upgrade Senior Unsecured Shelf (foreign currency) — (P)Aa3/stable from (P)A3/under review for upgrade Commercial Paper (foreign currency) — P-1 (unchanged) Other Short Term (foreign currency) — P-1 (unchanged) Baseline Credit Assessment: 7 Support: High Korea’s LCDC: Aa1 Mortgage and Land Bank of Latvia (Latvia) LT Bank Deposits (foreign currency) — A2/positive outlook, changed from A2/under review for upgrade ST Bank Deposits (foreign currency) — P-1 (unchanged) Baseline Credit Assessment: 11-13 Support: High Latvia’s LCDC: Aaa Banco Nacional de Comercio Exterior, S.N.C. (Mexico) Senior Unsecured (foreign currency) — A1/stable from Baa1/under review for upgrade Senior Unsecured MTN (foreign currency) — A1/stable from Baa1/under review for upgrade Commercial Paper (foreign currency) — P-1 from P-2 Baseline Credit Assessment: 14-16 Support: High Mexico’s LCDC: Aaa Banco Nacional de Obras y Servicios Publicos (Mexico) LT Issuer Rating (domestic currency) — Aaa/stable from Baa1/under review for upgrade LT Issuer Rating (foreign currency) — A1/stable from Baa1/under review for upgrade ST Issuer Rating (domestic currency) — P-1 from P-2 ST Issuer Rating (foreign currency) — P-1 from P-2 Baseline Credit Assessment: 13 Support: High Mexico’s LCDC: Aaa Instituto para la Proteccion al Ahorro Bancario (Mexico) LT Issuer Rating (domestic currency) — Aaa/stable from Baa1/under review for upgrade ST Issuer Rating (domestic currency) — P-1 from P-2 Baseline Credit Assessment: 8 Support: High Mexico’s LCDC: Aaa Nacional Financiera, S.N.C. (Mexico) Commercial Paper (foreign currency) — P-1 from P-2/under review for upgrade Baseline Credit Assessment: 11-13 Support: High Mexico’s LCDC: Aaa Nacional Financiera, S.N.C., Grand Cayman Branch Senior Unsecured (foreign currency) — A1/stable from Baa1/under review for upgrade Senior Unsecured MTN (foreign currency) — A1/stable from Baa1/under review for upgrade Other Short Term (foreign currency) — P-1 from P-2/under review for upgrade For the Baseline Credit Assessment, Support and LCDC for Mexico, please see Nacional Financiera, S.N.C above. Sociedad Hipotecaria Federal, S.N.C. (Mexico) LT Issuer Rating (foreign currency) — A1/stable from Baa1/under review for upgrade Issuer Rating (domestic currency) — Aaa/stable from Baa1/under review for upgrade Commercial Paper (domestic currency) — P-1 from P-2/under review for upgrade Backed Senior Unsecured (domestic currency) — Aaa/stable from Baa1/under review for upgrade Baseline Credit Assessment: 11-13 Support: High Mexico’s LCDC: Aaa Eximbanka SR (Slovakia) LT Bank Deposits (foreign currency) — A1/stable from A2/under review for upgrade ST Bank Deposits (foreign currency) — P-1 (unchanged) Baseline Credit Assessment: 8-10 Support: High Slovakia’s LCDC: Aaa Slovak Guarantee & Development Bank (Slovakia) LT Bank Deposits (foreign currency) — A1/stable from A2/under review for upgrade ST Bank Deposits (foreign currency) — P-1 (unchanged) Baseline Credit Assessment: 8-10 Support: High Slovakia’s LCDC: Aaa Development Bank of Southern Africa (South Africa) Issuer Rating (foreign currency) — A2/stable from Baa1/under review for upgrade Baseline Credit Assessment: 11-13 Support: High South Africa’s LCDC: Aaa Industrial Development Corp. of South Africa (South Africa) Issuer Rating (foreign currency) — A2/stable from Baa1/under review for upgrade Baseline Credit Assessment: 11 Support: High South Africa’s LCDC: Aaa Export-Import Bank of Thailand Issuer Rating (foreign currency) — A3/stable from Baa1/under review for upgrade Baseline Credit Assessment: 8 Support: High Thailand’s LCDC: Aa2 The ratings for FHB Mortgage Bank Co. Plc. remain on review. New York
David Fanger London
Janne Thomsen