TRIS Rating Affirms Company Rating of “Mega ICBC” at “A+”, Short-term Issue Rating at “T1” with “Stable” Outlook
TRIS Rating Co., Ltd. has affirmed the company rating of Mega International Commercial Bank PLC (Mega ICBC) at “A+” and has also affirmed the rating of the bank’s Bt3,000 million debentures under short-term debenture program at “T1” The rating outlook remains “stable”
The “A+” company rating of Mega ICBC reflects the strong parent support Mega ICBC receives from its Taiwanese parent bank as a strategic importance to penetrate into the Asia Pacific region.
The rating also takes into consideration Mega ICBC’s strong market position in lending to Taiwanese investors as the only Taiwanese bank in Thailand, its good asset quality and its strong capitalization. Limited prospects for Taiwanese investment in Thailand and higher competition from local banks are factors that limit Mega ICBC’s loan portfolio growth. The rating is partially constrained by a less favourable operating environment and Mega ICBC’s limited franchise value and network in Thailand, compared with other well-established local commercial banks.