TRIS Rating Affirms Ratings of “TISCO Bank” and Debentures at “A/Stable”
TRIS Rating Co., Ltd. has affirmed the ratings of TISCO Bank PLC (TISCO) and its senior debentures at “A” with “stable” outlook. The ratings reflect TISCO’s capable management team, the bank’s good risk management system, its good asset quality, its strong market position in the hire purchase business, and its better diversification of income sources.
The ratings take into account TISCO’s benefits as a commercial bank which will provide the bank with higher financial liquidity and flexibility, and long-term opportunities in commercial banking businesses. However, the ratings are partially constrained by uncertain economic factors, uncertainty in the securities industry, intensifying competition in the corporate and retail finance industry and TISCO’s limited branch network compared with other well-established commercial banks.
The “stable” outlook reflects the likelihood that TISCO will deliver a medium-term financial performance as expected, and the commercial banking business platform will benefit the bank in terms of expanded scope of business and financial flexibility and liquidity. The bank’s good risk management system, its proven track record and its strong capital fund will help mitigate future downside risks from uncertain economic and business environment. TISCO Bank PLC (TISCO)
Company Rating: Affirmed at A